The increase in value venture of a Capital financing lies parallel to the financing function in particular in the management support for the financed growth enterprises.

For the venture Capital societies has the management support thereby above all two functions. On the one hand they try to reduce thereby the risk of a failure of the received participation and to place the efficient employment of the means the available surely. Beyond that they aim at increasing the value of the participation by a positive contribution with the development of the growth enterprises.

Under the term management support all activities are thus usually summarized by venture Capital societies in the post office Investment phase, which have the goal to affect the development of the growth enterprise. In principle one differentiates thereby between management support with respect to the further sense and management support strictly speaking.

The management support in the broader sense contains mainly the rights of information and control the ventures Capital societies. The practice of these rights is usually strongly formalized. They are based on bases under company law and on resuming bilateral agreements in the context of the participation agreements. Right can venture Capital societies often be granted in these, which goes the far beyond under company law specified regulations. The conversion of the rights of information is normally made by regular reporting via the growth enterprises (characteristic numbers reports, reports on the situation and prognoses) and by means of periodically accomplished committee meetings (company meetings, supervisory board and adviser meetings).

Beyond that Capital societies their auditing rights exercise venture also by the definition of a set of obligated for agreement actions and business, like e.g. the conclusion of society and co-operation contracts, change of strategy and product program and the order of managing directors. With the management support in the broader sense Capital societies above all the shown goal of the minimizing the risk pursue the venture. By the regular information and control of the growth enterprises will the venture Capital society into the situation shifted to recognize negative developments promptly and in the sense of their Portfoliostrategie become active.

During the management support strictly speaking it concerns the management or support function the ventures Capital societies going beyond the classical information and auditing rights. It contains above all the advisory activity taking place outside from committees with contentwise questions. Here the growth enterprises receive support for problems, for which the qualification of the management is not sufficient or with decisions of large consequence, with which a tuning appears meaningful.

In addition further resources the ventures Capital societies can, as their networks or Reputation help the growth enterprise additionally. With the management support strictly speaking Capital societies above all the goal pursue venture of promoting and of contributing thus to the increase of the enterprise value the development of their Portfoliounternehmen actively.

Articles in category "Management support"

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Related Websites

We found here 3 related websites.

• Alliance for Nonprofit Management
  Membership association that delivers management and governance support services to nonprofit organizations.


• Management Support
  Office of Management Assessment - National Institutes of Health.


• Support Center for Nonprofit Management
  Strengthens leadership and management capacity of nonprofit and public interest organizations by providin...