A vehicle is a medium for the expression, communication, or achievement of ideas, information, power, goals or objectives. Therefore, an Investment Vehicle is a medium for the achievement of investment objectives. Different vehicles suit different purposes, just like automobiles can be chosen for comfort, speed, reliability, endurance, road conditions, retaining value, prestige, etc. an investment has attributes that accomplish certain goals. Balancing the investment timeframe, risk profile, expected return, capital growth vs income, enables an investor to select a vehicle that matches their exact profile. For example, if your investment plan involves a target monthly income goal, then you will select a very different vehicle than you would if capital growth was your objective.
An asset class consisting of equity securities and debt, which is invested in an operating company that is not publicly traded on a stock exchange. A private equity investment is typically made by a firm that specializes in private equity, venture capitalist or an angel investor. Each investor category has different goals, preferences and investment strategies; however, all provide working capital to nurture expansion, new product development, or restructuring of the company’s operations, management, or ownership.
1. A sole proprietor or partner in a partnership to whom the legal requirements under a contract of employment do not apply. He or she may employ others. These individuals obtain their own work or sales and pay their own expenses. 2. The process of earning a living through using one’s own capital, knowledge, intelligence, efficiency and taking a risk.
Business financing for startups and high-growth businesses that have long-term growth potential. The risk is typically high for investors, but the upside offers significant opportunity. Start-ups are usually based on an innovative technology or business model and they are usually from the high technology industries, such as information technology, social media or biotechnology. Firms or funds invest in these early-stage companies in exchange for an ownership stake. Typically venture capital investment occurs after an initial seed funding round. The first round of institutional venture capital is called the Series A round. Venture capitalists provide this financing in the interest of generating a return through an eventual “exit” event, such as the company selling shares to the public in an IPO or doing a merger and acquisition.