Micro venture capital
Encyclopedia
Micro venture capital financing invests in projects too small to attract the attention of more traditional venture capitalists but too big or risky to attract capital from traditional lending sources. See venture capital
.
Micro venture capital is one of the approaches adopted in Islamic economics
as a substitute for interest-bearing loans, or riba
, prohibited by the Qur'an
.
It is also viewed by some as a promising sort of developmental aid. At the Indian Institute of Management at Ahmedabad, for example, Professor Anil Gupta has espoused a search for marketable inventions among India's poor. He believes their ingenuity is a resource that MVC can unlock.
In Latin America, micro venture capital is growing as a field as development professionals and investors realize the importance of helping entrepreneurs start formal economy companies. One of the first micro venture capital funds is sponsored by Agora Partnerships, a not-for-profit organization, and invests $25,000 to $250,000 in early stage socially responsible companies in Central America.
Another prominent MVC is the Inventure, a social enterprise that invests between $1,000 to $15,000 in micro-enterprises in developing communities. It currently has operations in India, Mexico and Mali.
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
.
Micro venture capital is one of the approaches adopted in Islamic economics
Islamic economics
Islamic economics refers to the body of Islamic studies literature that "identifies and promotes an economic order that conforms to Islamic scripture and traditions," and in the economic world an interest-free Islamic banking system, grounded in Sharia's condemnation of interest...
as a substitute for interest-bearing loans, or riba
Riba
Riba means one of the senses of "usury" . Riba is forbidden in Islamic economic jurisprudence fiqh and considered as a major sin...
, prohibited by the Qur'an
Qur'an
The Quran , also transliterated Qur'an, Koran, Alcoran, Qur’ān, Coran, Kuran, and al-Qur’ān, is the central religious text of Islam, which Muslims consider the verbatim word of God . It is regarded widely as the finest piece of literature in the Arabic language...
.
It is also viewed by some as a promising sort of developmental aid. At the Indian Institute of Management at Ahmedabad, for example, Professor Anil Gupta has espoused a search for marketable inventions among India's poor. He believes their ingenuity is a resource that MVC can unlock.
In Latin America, micro venture capital is growing as a field as development professionals and investors realize the importance of helping entrepreneurs start formal economy companies. One of the first micro venture capital funds is sponsored by Agora Partnerships, a not-for-profit organization, and invests $25,000 to $250,000 in early stage socially responsible companies in Central America.
Another prominent MVC is the Inventure, a social enterprise that invests between $1,000 to $15,000 in micro-enterprises in developing communities. It currently has operations in India, Mexico and Mali.