International Venture Capital Firms and Funds Key Terms

Some key terms for dealing with international venture capital firms and funds

International venture capital firms provide a lot of the backing for a wide variety of innovative projects aimed at promoting businesses overseas and across multiple national borders. Domestic and international venture capital firms use their funds judiciously for the best chance at profiting from an investment while helping cash poor businesses to reach for a project that may not have been possible using just their own finances. Knowing about some of the key terms for these kinds of venture capital firms can help a business make a successful partnership.

 

Return on investment

An international venture capital firm will want to know about the possible return on investment from their contributions. The return on investment is the ratio between what has been invested and what will be returned to the investor.
Try: See more on return on investment from Investopedia.

Investment cycle

Many venture capital firms have investment cycles. Some range from three to five years, and others have different cycle periods. Investment cycles may be based on results from research tools regarding economic cycles and the most strategic times to get involved in additional investment.
Try: See more on investment cycles including a neat visual to demonstrate how cycles are broken down at this Confused Capitalist blog.

Entrepreneur in residence

A venture capital firm's entrepreneur in residence or EIR is a person that capital seekers will want to talk to. This individual handles a lot of the affairs of a venture capital firm's investments.
Try: See more on the entrepreneur in residence and how to approach this individual at Startable.com.

Chief technology officer

The chief technology officer in a firm often has a little less direct clout than the entrepreneur in residence, and a slightly different focus toward some of the specific technology and product aspects of investments. However, this individual can also be a resource for connecting with a venture capital firm.
Try: See more on the Chief Technology Officer role from Business Dictionary.

Business plan

Any company wanting to partner up with a venture capital firm will need a reasonable business plan. The business plan is the investor's guide or map to how they can expect their investment to work. It details all kinds of aspects of a beginning business or project.
Try: Find out more about writing a business plan at The Entrepreneur Network.

European Private Equity & Venture Capital Association

The European Private Equity & Venture Capital Association or EVCA is a trade association that assists VC firms in their international initiatives. It's good for potential international operators to be aware of this group and the resources they provide.
Try: Take a look at the EVCA website to learn more about how they observe VC work in EU countries.

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