The capital of German corporations in an international comparison is at a low level. Reasons for this may be in the planning of the capital market, however additionally within the German culture. The terribly fact is that a low equity ratio for the reception of foreign capital is unfavorable. Very little adhesive equity will
Increase the risk for the lender, therefore worsened the conditions for the capital issued and at identical time restricts lending heavily. This work considers the possibility of financing young corporations with equity that is provided by private investors. Focus is primarily how and thus the flow of venture capital funding from business angels and thus the motives. This possibility ought to additionally show up in how way it giving itself as a different to the debt financing and is positioned because the German market in an international comparison. The event of high-growth and innovative company requires in several cases capital amounts that go significantly beyond the personal money suggests that of the founder and entrepreneur. Public funding is on the market solely to a limited extent on the market and a debt is typically restricted by insufficient security. Thus, the possibility of equity financing by external equity capital investors offers to for the entrepreneur. Particularly for young corporations that are still within the phase of growth, still as for larger medium-sized corporations an initial public giving represents mostly no different as an instrument of the equity financing via the capital market. The equity capital structure may be optimized instead corporations of venture capital or private equity. created on the market is venture capital, additionally risk or venture capital known as, of venture capital corporations, that are financed through the formation of funds, typically, banking, insurance or massive corporations, however additionally private people. A variation or addition to the participation by a vcg represents cooperation with a business angel.