In addition it undertakes in the long term

Venture capital, because of its characteristics but also of the lessons learned from the collapse of the bubble of the year 2000, proposes a model interesting and virtuous financial management. An example to follow for the refounding of global finance. Here at least six good reasons.

Virtuous. By definition, the venture capital invests in innovative companies, unanimously considered as the main engine of growth and job creation. In addition to the money they bring, venture capital teams play an active role in the governance of funded firms and provide valuable advice to entrepreneurs.

Long term. In addition it undertakes in the long term. Capital gains realized by venture capital funds are closely linked to the economic development of the funded companies, excluding any lever mechanism and effect of mounting. Low liquidity resulting is not always appreciated by investors institutional or private, to the rotation of their assets, but induced real stability and low volatility beneficial for economic development.

Equitable. Other interest, in a time of debate stirred on the sharing of value between shareholders and employees, it offers a fair distribution in simple financial arrangements through the systematic implementation of a plan of stock for the benefit of those involved employees. The rights and obligations of the shareholders and their respective weights in the Division of the future value, are governed by statutes and a shareholders Pact to ensure the alignment of all on the same objectives. The simplicity of the fixtures ensures a direct link between the economic performance of the company, the financial performance of the Fund and the remuneration of the risk and the efforts of entrepreneurs and their key employees.

Responsible for. Venture capital companies receive a commission for the management, Managers (the "party interest"), but only on the double condition to invest cash in their funds (and therefore share the same risks as their investors) and achieve a minimum performance priority. But the more restrictive requirement is that this award is calculated on the cash flows to investors, not intermediate valuations. It is therefore paid once added value permanently carried out by investors. We are far from the practices in other classes of assets, where annual bonuses are distributed based on NAV which do not necessarily reflect the final performance of the investment. Thus, the stock market adage who wants that "as it has not sold, it has not lost" is transformed in principle virtuous for managers: "as long as it has not sold, it did not win"!

Prudent. The accounting methods of valuation have evolved to more accurately reflect the real value of the assets. This evolution has had little impact on venture capital, often made the comparable market and relatively small, yet few profitable companies for which portfolios are difficult to apply. Thus, in the absence of events important in the life of the society, maintaining the historical value often remained rule. Venture capital loses certainly in terms of communication, since it thus forbidden to display temporarily inflated performance, but its investors are gaining visibility and the whole of the economy in serenity.

Transparent. Venture capital management companies must be approved by the authority of financial markets and operate under permanent control. The standard legal form of venture capital, RPF (mutual fund risk), is a type of vehicle unanimously recognized, including by foreign investors. Under French law, it offers a high transparency to its subscribers and the regulatory authorities and avoids the temptation of the escape of the funds to tax havens or weakly regulated jurisdictions.

These principles of proximity with the real of regulating economy, management and compensation were introduced gradually by the venture capital and are proven solutions with the refounding of finance should be guided, without omitting a last element essential to the restoration of confidence and on which the venture is also a model: the transparency of communication! What other class asset ose wear the word "risk" in its name