Abstract
If you have a great idea for a business but no money or if you have a small company with potential for tremendous growth but need more funding to make it happen, then you might look for venture capital to help turn your dreams into reality. In 1953, the US Congress voted the small business act and established a governmental agency called 'SBA', standing for small business administration. The objectives of the SBA are to help communities affected by disasters as well as assist the interests of small business concerns. Its role is to provide these communities with loans or be their guarantor for bank loans. In 1958, US Congress voted the small business investment act. It aimed to help the financing and management of the small entrepreneurial businesses in America. Then, in the 1960s-1970s, there was a period of great innovation in scientific sectors. Many new technologies were created in domains such as electronics, medicals applications and data-processing. These major breakthroughs in new technologies were an opportunity for entrepreneurs to launch their own business. Then, as a need for funds followed this entrepreneurial trend, the number of investment firms also increased. In the 1990s, innovation was boosted by the Internet revolution that has been undergoing since. As a consequence, venture capital funds, which are actually a rather modern form of investment entities, are becoming more in number so as to answer to the need for funds to finance start companies.
