The purpose of this study is to explain the ins and outs of sharia venture capital business in Indonesia as a form of financing institution business in a systematic and complete manner. This research is included in the type of library research. The findings of this study explained that literally venture capital means capital invested in a risky business. It is said to contain risk because this investment does not emphasize the collateral aspect, but rather on the prospects and feasibility of the business being financed. Venture capital was a financing that has high risk. Venture capital financing is different from banks that provide financing in the form of loans or credit, while venture capital provides costs by making direct investments into the company it finances. Meanwhile, sharia venture capital is an investment made by a Sharia financial institution for a certain period of time, and after that the financial institution divests or sells part of its shares to the company’s shareholders. A very prominent characteristic in the venture capital business is related to risk. The magnitude of the risk that may be faced in the venture capital business causes the high expected return expected by venture capitalists in Indonesia.
State Islamic Institute of Pekalongan, Jawa Tengah, Indonesia
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All stakeholders of State Islamic Institute of Pekalongan, Jawa Tengah, Indonesia
The purpose of this study is to explain the ins and outs of sharia venture capital business in Indonesia as a form of financing institution business in a systematic and complete manner. This research is included in the type of library research. The findings of this study explained that literally venture capital means capital invested in a risky business. It is said to contain risk because this investment does not emphasize the collateral aspect, but rather on the prospects and feasibility of the business being financed. Venture capital was a financing that has high risk. Venture capital financing is different from banks that provide financing in the form of loans or credit, while venture capital provides costs by making direct investments into the company it finances. Meanwhile, sharia venture capital is an investment made by a Sharia financial institution for a certain period of time, and after that the financial institution divests or sells part of its shares to the company’s shareholders. A very prominent characteristic in the venture capital business is related to risk. The magnitude of the risk that may be faced in the venture capital business causes the high expected return expected by venture capitalists in Indonesia.
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Primary Language | English |
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Subjects | Business Administration |
Journal Section | Articles |
Authors | |
Project Number | 01 |
Early Pub Date | June 30, 2022 |
Publication Date | June 30, 2022 |
Published in Issue | Year 2022 Volume: 6 Issue: 1 |