Venture Capital generally refers to the financing of early stage companies and the expansion phase, with Private Equity as a broader term covering Venture Capital investment and additional acquisitions. Venture Kapital investing also involves active participation in management often involves changing business strategy, management, restructuring of financing (replacement of equity for debt or vice versa), recapitalization and the like. A typical investment in Croatia at this stage of the investment is over EUR 500 thousand.
The Croatian Private Equity and Venture Capital Association (www.cvca.hr) operates in Croatia with the aim of promoting Private Equity and Venture Capital investments. To present the financing of the development of the company by the stages of development:
(i) experimental or seed phase
(ii) start-up phase
(iii) expansion phase
(iv) the recapitalization phase
(v) acquisition phase (buyout, sale of majority shareholding)