As with any service sector, there's some basics to understand about venture capital before diving deeper into how VC works in specific countries or regions.
In most cases, companies who are starting out do not have the means to start as a publicly-listed company, so they turn to private investors. Venture capital is the term used to refer to private capital investments (venture funding) being made in private companies, for example, companies not listed on the stock exchange.
Important to remember is that, traditionally, the venture capital firm operates as a limited partner. The general structure goes that investors are limited partners and the venture capitalists who make the investments & manage the funds are the general partners.
Explained in simple terms, venture capital firms raise the funds needed to invest in companies by opening a venture fund and securing commitments from limited partners. The costs of the venture capital fund is generally covered by the fund itself. However, in some cases the venture capital fund receives a fee from the investee company for services rendered or as a member of the board of directors.
Each venture capital firm will decide their own structure and how they choose to work alongside investors and the companies being invested in.
Belgium has become an ideal place for venture capital partners and startups to collaborate on business growth. This comes after the increased interest modern investors show startups. With this notion, venture funding is a valuable alternative investment type for those looking to get their ideas off the ground, turn them into working businesses and grow further. In this regard, venture capital in Belgium and Belgian-based companies have experienced great success in terms of achieving transformative growth.
With the technology industry being one of the most active when it comes to alternative funding, Volta Ventures is backing companies that operate in the SaaS and other respective tech sectors to achieve their greatest potential. As the tech scene in Belgium is gaining momentum, we expect to see the Belgian technology industry accelerate its growth over the coming years. Especially with the presence of venture capital partners being involved in identifying lucrative tech investment opportunities.
Since the early 2010’s, fundraising by venture capital partners in Belgium has stayed relatively stable. Next to this, the promotion of entrepreneurial development and innovation has had a positive impact on venture capital in Belgium. With no recent regulatory changes affecting Belgian-based venture capital firms, the industry is continuing to progress uninterruptedly.
The structure of a venture capital fund has control over how investments are made, for example, regional funds that only invest in specific geographical areas.
With our venture capital firm operating from Gent, we have a specific interest in the Benelux region, however, we're not limited to only this location.
