The Features of Venture Capital Investment Trusts

The goals of Venture-Capital Investment Trusts (VCIT) is not only to acquire gains by providing financial support to companies, but also to create added value to the companies with growth potentials with the help of their professional consultancy services in various levels of their business cycle.

  • VCITs can be both minority or majority shareholders but they tend to be a minority shareholder (%49).

  • The provided financial resources are long term, lump sum and interest-free.

  • Investee companies receive support for new product & service development and corporate management.

  • Contributes to strategic decision making and the institutionalization process by active participation in the company's management.

  • VCITs usually prefer to invest at the 2nd or 3rd level of the business life cycle i.e. production, service and delivery exist but where this has yet evolved into a profit making stage or where sales are increasing with no considerable profit.

  • VCITs usually plan to exit their investments between 3 to 7 years.