Vocabulary Focus

Ex. 1. Complete the table by inserting the missing forms if possible

Noun	Verb	Adjective/Participle
		capital
commitment	commit
investment		invested
	assess
		accurate
diligence
	retain

Ex.2. Complete the parts of the expressions and make up sentences with them

1. to interest 2. to invest 3. to qualify 4. to be 5. to be committed 6. to be invested 7. to provide incentives

on to in exchange for in return for in of for

a loan entrepreneurial business investment commitment interest a loan a company an equity stake

Ex. 3. Match the words and expressions with similar meaning from column A with column B

A B

1. risk capital a. unquoted company

2. shares (n) b. estimate (v)

3. substantial (adj) c. support/help (v)

4. assess (v) d. considerable/sizeable (adj)

5. deal e. venture capital /development capital

6. unlisted company f. transaction / bargain

7. incentive (n) g. equity (n)

8. back (v) h. stimulus (n)

Ex. 4. Match the Russian word combinations with their English equivalents:

A B

1) cash flow a. “бизнес-ангел”

2) unquoted company b. акционерный капитал

3) due diligence c. налоговые льготы/ стимулирование капиталовложения, послабление налогообложения

4) Venture Capital Trust (VCT) d. проверка благонадежности финансового состоянии компании

5) rate of return e. поток денежных средств

6) business angel f. инвестиционные обязательства

7) investment commitments g. послужной список, достижения

8) equity stake h. контрольный пакет акций

9) tax incentives i. венчурный фонд

10) track record j. уровень доходности

11) share capital k. не котирующаяся компания (ценные бумаги которой не котируются на бирже)

Comprehension

Ex. 1. Based on your understanding of the text, are the following True or False?

1. Venture Capital is a form of "risk capital", i.e. capital that is invested in public sector of the country.

2. Risk capital means investment as a loan so the investor will require a lower "rate of return".

3. Venture capital provides long-term, committed share capital, to help unquoted companies grow and succeed.

4. Venture capital investors are interested in companies with medium growth prospects, which are managed by experienced team.

5. Venture capital firms usually look to retain their investment for between three and seven years or more.

6. The due diligence doesn’t make any sense for the investor’s consideration.

Ex.2. Find in the text the answers to the following questions:

1. What is venture capital?

2. What are the major risks taken by venture capitalists?

3. What kind of business is attractive to venture capitalists?

4. For how long do venture capitalists invest in a business and why?

5. Where do venture capital firms obtain their money?

6. What is involved in the investment process?

7. What critical documents are needed to be ready with to attract the investor? Comment on them.

Text 2