Venture capital and the role of special finance associations in development of the sector of venture capital

Venture capital is an activity for those firms which have competitive advantage and high potential for development because of productivity improvements in the long run. It serves the firms in terms of finance and expertness and provides high profit from the earlier supported investment Venture capital can perform this function by supporting small and medium scale firms which have the capacity of innovation in economy and computer fields. Venture capital supports the firms in exchange for profit-loss based share. Private Finance Houses have structural similarity with venture capital system. Especially "Mudaraba" and "Muşaraka" methods of Private Finance Houses are very similar to the mentioned system. Although it's in the agenda of Turkey recently, the system is very common in the USA and European countries. The importance of the system for Turkey and completed legal structure necessitate to implement the system. At this stage, because of the structural similarity between Private Finance Houses and venture capital, Private Finance Houses and venture capital, Private Finance Houses can accelerate the process of implementing the system.