Venture capital and obstacles to the venture capital investments

Abstract

The subject of this article is the concept of venture capital, one of the most attractive model of financial intermediation in the modern business environment. The paper will first present the concept of venture capital, its presence on a global level, the form in which it occurs and stages of this type of investment. Then it will be analyzed the challenges related to the implementation of this financial arrangement, especially in the transition countries. The aim of the research is to look at the key features of venture capital and the possibility of its implementation in different social and economic conditions, given the obstacles faced by the venture capital investors.

Keywords

• venture capital
• startup companies
• transition countries
• investment
• agency problem