Please wait while the transcript is being prepared...
0:00
My name is Rudy
Aernoudt. I'm professor
at the University of
Ghent in Belgium,
and the topic of today is
about venture capital.
0:10
When we speak about
venture capital,
it means we're going to
do a venture together.
The investor and investee
becomes together
owner of a company.
When contradiction to banks
who are giving credits,
an investor will be co-owner of
the company and this makes
of course a big difference.
They are doing a
venture together.
That's where the name venture
capital is coming from.
0:36
When we speak about
venture capital,
stricto sensu, venture
capital has three levels.
First of all we have seed,
which is the financing of
the very early start
of the company.
The second level we
call it early stage,
and the third level we call
it expansion or scale-up.
In the venture capital,
we have three different
compartments.
0:57
The investment has to be
considered stage by stage.
Seed, when we speak about seed,
it means financing the very
beginning of the company.
We're speaking roughly
about amounts less than
200,000 in order to finance
what we call the Pre product,
we start by financing.
We are looking for a return
which is 25 multiples.
This means that the investor
once at the end of the road
25 times more the money
that he or she invested.
This high level is of course
understood by the fact that
the risk is very high
and a lot of these
companies just go bankrupt.
After the seed investment,
mostly you have the angel
investment, amounts
from 200,000 to one million
and then we speak about
series A, B and C. Depending on
the level of the
evolution of the company.
Series A is from 1-3 million,
series B is from 4-8 million,
and series C is
from 8-50 million.
Series A meaning the
inital revenues, series B,
we are scaling, and series C,
we have some
profitability in sight.
The venture capital,
why do we need it?
