Do you know what investment funds are? An investment fund is configured as a collective financial instrument that amalgamates the resources of various investors in order to make diversified investments according to an established strategy.
These funds are managed by a managing company, and the return generated is distributed among the participants proportionally to their contribution to the fund’s total assets. The safety of investors is ensured through the custody of the fund’s assets by a depository company, which oversees its regulatory compliance.
And what are investment funds for entrepreneurs?
Investment funds for entrepreneurs constitute specialized programs that seek to support the development and growth of business initiatives, offering not only financial support, but also professional guidance and accompaniment.
These are some of the benefits for entrepreneurs offered by accessing investment funds:
- Investment funds provide financing that can be crucial for the growth and development of business undertakings. This allows them to access financial resources that might otherwise be difficult to obtain.
- By receiving investment funds, entrepreneurs can benefit from the experience and professional management of the fund managers. This can provide specialized knowledge in financial and strategic decision-making.
- Just as investors diversify their portfolios with investment funds, entrepreneurs can diversify their funding sources by accessing different investors through a fund.
- Obtaining financing from an investment fund can also lend credibility and validation to a business undertaking. Investment from a recognized fund can support the viability and potential of the business.
Though investment funds are a way for business undertakings to acquire financing in order to continue developing and growing, they are not the only alternative available. In the case of social entrepreneurship in Peru, the Wiese Foundation has created the Entrepreneur Fund program.
The Entrepreneur Fund is an innovative program that, unlike traditional investment funds, not only seeks to support business undertakings with financial resources, but is also committed to providing training, financing, and professional advice to social entrepreneurship undertakings formally constituted in Peru.
The second call for applications by the Entrepreneur Fund, officially launched on November 15, 2022, underscores the participation of key institutions such as UTEC Ventures, UNESCO, and W Capital. Currently, the four companies that are part of the new portfolio of the Entrepreneur Fund have already been selected, and, during this stage, they will become beneficiaries of financing to bolster their growth and development, which is combined with specialized professional advice, providing entrepreneurs with access to the experience and knowledge of experts in different business areas.
Aside from the financial support and advice, the beneficiary companies participate in an acceleration program designed to boost their capacities and strengthen their business models. We invite you to learn more about the Entrepreneur Fund here → https://www.fundacionwiese.org/en/solidarity-fund/entrepreneurial-fund
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