What makes a company consolidate in the venture capital market?

The capital market has been through turbulent moments since 2020, partly due to the difficulty faced by startups in the last cycles Operational, but also for the direction of professional investors to other investment modalities, which makes it difficult to raise funds by investment funds.

At these times when not everything goes that well, the market ends up determining who the protagonist players are, which they can even find in these contexts great opportunities. But this consolidation in the market is the result of the responsibility with which investment management companies in a capital of capital deal with the solidity of the investments they made. In this scenario, we highlight the responsibility that such companies have a proper assessment of the companies invested, which starts with a legal and financial audit, undergoing a process of financial modeling of a business plan and the value assessment of the company target. The success of this process is what will increase the ability of managers to raise third party resources for investments in projects of this nature, with a good thesis and the home theme well done.

Once the investment is made, it is also essential that the operational management of the invested company is closely coordinated, with the support, supervision and/or participation of the manager.

At the end of the day, what matters is how companies operating in this sector deal with the fiduciary obligations resulting from third party resources management.