Venture capital is generally allocated to HNWIs and small organisations with exceptional growth potential and appears dedicated to continuing to expand. These investments have own potential risks as they are illiquid but capable of giving excellent returns, if invested correctly. The return to the venture capitalists is directly proportional to the growth of the company. Venture capitalists hold power to influence major decisions of the companies in which they are investing; after all, it is their money at stake. These capitalists have an excellent net worth. In simple words, venture capitalist provides the fund knowing that there is a significant risk attached to the future profit of the company and cash flow. Unlike money lending, Venture Capital is all about investing capital in exchange for an equity stake in the business rather than borrowing as a loan. This is an excellent way for the organisation with immediate and significant capital requirements and limited sources.

Why Choose Labuan for Venture Capital Investment Firm Set-Up?

Private Fund is often used as a hedging and investment vehicle by private investors. You can consider using a Labuan Mutual Fund as a platform for crowd-funding activities by pooling the monies from a group of investors who are having the same objectives. A crowdfunding activity is made easier in Labuan by registering your Information Memorandum (Prospectus) with Labuan Financial Services Authority (LFSA) subjecting to some requirements. The private fund can be registered under a Labuan company, a partnership, a foundation, or a unit trust.

Here are some advantages of setting up a private fund in Labuan:

• There is a minimum capital requirement
• Great protection of confidential information
• Funds can be denominated into multiple currencies
• Different structure to suit different needs
• Hassle-free entry and exit process

When it comes to the Labuan Company Incorporation and Prospectus Registration, you have to appoint a licensed Trust Company as your authorised agent to prepare and submit the required documents to LFSA. From private fund set-up to public funds, we offer our clients a wide range of incorporation services. We at QX Trust, a licensed Labuan Trust Company, provide full-fledged corporate secretarial services by managing everything from submission of regulatory compliance to the preliminary evaluation of business strategy. You can engage us at any stage of incorporation, and we assure you that the services delivered by our team will be worth spending time and money. With our global footprint, we have also created a vast customer base. For any Private or Public Fund set-up in Labuan, we are the most reliable choice. To know more, reach us at +60 3 9212 6940 or consultant@qx-trust.com . You can also visit https://www.offshore-labuan.com/labuan-private-fund/ for more details.