FREE online courses on Venture Capital Funding - The Venture Capital Industry - Disbursements

 

 

·         The investment by venture funds in portfolio companies is called “disbursement”. A portfolio company may receive one round, or in many cases, several rounds of venture financing in its life as needed.

 

·         A venture firm may make these disbursements on its own, or in many cases will co-invest in a company with other venture firms ("co-investment" or "syndication"). This syndication provides more capital resources for the company.

 

·         Firms co-invest because the company investment is congruent with the investment strategies of various venture firms and each firm will bring some competitive advantage to the investment.

 

·         A venture firm may not invest all of its committed capital, but will reserve some capital for later investment in some of its successful companies with additional capital needs.