High Returns and Controlled Risk: Venture Capital, the safe way

Nowadays, however, the story reads differently. With a steady increase in the uptake of alternative investments as an asset class, there exists a multitude of exciting investment opportunities. Some of these assets include private equity, venture capital, gold coins, cryptocurrencies, and so forth. Essentially, any asset not defined as a ‘traditional’ asset classes such as equities, bonds, or fiat currencies.

Section 12J Venture Capital Companies, are a disruptive form of alternative investments. They offer the informed investor an efficient chance to guarantee returns on their capital. Best placed in a diversified portfolio, venture capital is perfect for investors with “risk-on” and “risk-off” mindsets.

The gem of Section 12J Venture Capital Companies is the tax benefit it offers to investors. You, as a Section 12J investor, would enjoy the benefit of being able to write off the amount you have invested in a Venture Capital Companies from your yearly taxable income. Further, the investor only has 55% exposure to the risk of their investment, as 45% of the invested amount is rebated. This model is tax-efficient and reduces, greatly, the risk associated with Venture Capital in general.