Investing in Venture capitals is substantially different from investing in a hedge fund. As with an investment programme, investing in a venture capital fund gives better liquidity and hedging against market cycles. Long-term investment in venture capital funds is more gradual. In most cases, the initial cost is between 5% and 10% of the entire investment. During the investment period, which generally lasts between three and five years, the investor will make periodic payments to maintain their commitment. Investors can borrow or use leverage during the financing tenure to get a return on their money before the final commitment call.
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