David Kezerashvili discusses the dynamic relationship between venture capital firms and start-ups

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David Kezerashvili discusses the dynamic relationship between venture capital firms and start-ups

Start-ups have become an important part of how industries drive innovation.

They are lighter and more agile than established organizations, allowing them to seek out more daring and unconventional solutions. Today, many innovations are developed by start-ups that are ultimately bought out by larger companies that integrate their technology and ideas.

This is an effective framework for quickly integrating innovative ideas into completed applications, but start-ups still face many challenges from the start. They require investors from the start to develop their ideas and technologies, and the costs can be substantial, even for the smallest start-ups.

Venture capital firms are one of the main sources of capital for start-ups. Many venture capital firms provide strategic assistance to promising start-ups long before their ideas have been sufficiently demonstrated to warrant their purchase by a large corporation. This bridges the gap between design and delivery that many start-ups are unable to overcome. One of these venture capitalists is Infinity VC.

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Infinity VC Startups

We had the opportunity to chat with former Georgian Defense Minister and current venture capitalist David Kezerashvili about how his venture capital firm Infinity VC invests in start-ups. The company focuses on investments in fintech, mobile technology and other areas where agile start-ups drive innovation.

Kezerashvili believes this is the direction his business needs to take due to the widespread impact innovative start-ups have on the economy compared to other potential investments. He told us: “Investing in tech start-ups stimulates the production of more real value, creates beneficial technologies and products, creates high-quality employment opportunities and increases incomes at all levels. “

Infinity VC has funded start-ups developing solutions in areas such as AI implementation, multi-channel commerce, and mobile infrastructure, among others. The commitment to invest in innovation enables start-ups to provide practical solutions to the problems of many industries.

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The unique role that venture capital plays in the development of start-ups

In 2020, venture capital investments in the United States amounted to nearly $ 130 billion, invested in companies at various stages of development. Much of that was invested in early stage companies, the very first rounds of funding. The money comes at a crucial time for these startups, where rapid growth is often required to continue development.

There are of course other potential sources of funding for start-ups. Traditional bank loans are sometimes available but have more stringent requirements to demonstrate current value. Grants and grants from government sources also have strict and sometimes seemingly arbitrary requirements. Venture capital firms carefully assess the merits and potential of core ideas being developed, offering funding where other sources fail to provide.

Venture capital is often the only source of funding available to start-ups in the early stages of developing their ideas. Kezerashvili told us: “These are organizations with brilliant minds behind them, often very small teams dedicated to turning their core ideas into real solutions. Infinity VC helps them make it happen.

Stay at the heart of innovation

Investment firms of all kinds are largely remote from the companies and people in which they invest. Decisions are made by spreadsheets and analyzes, and why shouldn’t existing organizations get a return on their investment? There is no doubt that venture capital firms intend to profit from their investments, but they play a more involved role that brings them closer to true entrepreneurship.

Kezerashvili praised his experience with the start-ups he funds through Infinity VC, telling us, “I am really grateful for the time I spent with the people behind these start-ups and for having could observe true innovation the spirit flourishes.

Venture capital firms invest in something more than return on investment and portfolio performance when choosing to finance start-ups. They become an active part of the start-up spirit that drives innovation and new technologies necessary to build a better future.

The future of seed finance

There is no indication that the relationship between venture capital firms and innovative start-ups will start to weaken in the foreseeable future. In fact, we see the opposite. As the world continues to face new challenges, the demand for innovation will only increase. And with this demand, so will the need for reliable financing for start-ups in the early stages.

“Investing in start-ups through Infinity VC has given me a glimpse of what I believe will be the future, where a new kind of relationship is defined between venture capital firms and the efforts they support” – David Kezerashvili


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