Venture Funds (VFs) is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of the number of employees, annual revenue, or both). Orius's Venture Funds invest in these early-stage companies in exchange for equity, or an ownership stake, in the companies we fund.
The typical venture capital investment occurs after an initial "seed funding" round. The first round of institutional venture capital to fund growth 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 for the first time in an initial public offering (IPO) or doing a merger and acquisition (also known as a "trade sale") of the company.
Venture capital has been used as a tool for economic development in a variety of developing regions. In many of these regions, with less developed financial sectors, venture capital plays a role in facilitating access to finance for small and medium enterprises (SMEs), which in most cases would not qualify for receiving bank loans.
US$ 23,4 billion in 2010
US$ 29.1 billion in 2011
US$ 35,5 billion in 2013
(Dow Jones VentureSource)
Nubank US$ 707 million
Netskope US$ 400 million
Docker US$ 272 million
€ 12,6 billion in 2010
€ 18,7 billion in 2012
€ 22,5 billion in 2015
(Trade association Invest Europe)
In 2017, $560m was invested into African. It was a 53% increase compared to 2016, 2x the funding amount of 2015 and 14x the fundraise amount in 2012.
CVCA has more than 150 member firms, which altogether manage over US$ 100 billion in venture capital. CVCA was founded in mid-2002 and is based in the international financial center of Hong Kong.
US$ 2,2 billion in 2013/14
US$ 3,3 billion in 2015
US$ 3,5 billion in 2016
India US$ 7.5 billion (2016)
Vietnam is experiencing its first foreign venture capitals:
IDG Venture Vietnam ($100 million).
DFJ Vinacapital ($35 million).
Orius Capital take on the risk of financing start-ups with the goal that help all of the firms they support become successful. The start-ups are usually based on innovative technology or new business model, and they are generally from the high technology industries, such as information technology (IT), cybersecurity and two excellent technology recently AI and Blockchain.
A core skill of Orius Capital’s Venture Funds is the ability to identify novel or disruptive technologies that have the potential to generate high commercial returns at an early stage. By definition, VFs also take a role in managing entrepreneurial companies at an early stage, thus adding skills as well as capital, thereby differentiating VFs from buy-out private equity, which typically invest in companies with proven revenue, and thereby potentially realizing much higher rates of returns.
Venture capital is also a way in which Orius Capital can construct an institution that systematically creates business networks for the new firms and industries, so that they can progress and develop. Orius helps identify promising new firms and provide them with finance, technical expertise, mentoring, marketing "know-how", and business models. Once integrated into the business network, these firms are more likely to succeed, as they become "nodes" in the search networks for designing and building products in our domain.
Most venture funds investments of Orius are made in a pool format, where our investors combine their finances into Orius's fund that invests in many different startup companies. By investing in the pool format, Orius Capital are spreading out risky, ensuring capital as well as collecting many profits for investors from many different investments instead of putting all of the money in one start-up firm.