Banking role of venture capital in the formation and influence of participation

A system that has not consisted of interest in the financing of the entrepreneur is quite interesting. Focused on the present, to provide risk capital to SMEs. Mudaraba and Musharaka are, financing of small-scale enterprises and long-term projects to long-term financial instruments designed for the purpose. In particular, we can tell the Venture Capital is an example of a modern Mudaraba financing. Venture capital, with the participation banking Mudaraba financing model and this model has important similarities with the one hand, the establishment of small funds bringing together the largest enterprises, promote the socio-economic harmony, and on the other hand, appears to be a basic mechanism to ensure. In theory, Interoperability to the functioning of Mudaraba financing participation banking, investment banking, based on the function of forming areas of work will be fulfilled. On the other hand, interest-free financial institutions, venture capital companies and interest-free financial institutions in which it operates according to the same principles applied Mudaraba method appears to be substantially similar to venture capital companies.In recent years, our country, as a result of developments in the financial markets, venture capital system is being implemented in intensive economies in the world, due to the ease of providing long-term funding for investments in non-interest bearing and as a method of financing a new agenda of our country. Participation Banks established in our country, the organization directed its investments in venture capital entities in accordance with the philosophies. These banks within the framework of Mudaraba and Musharaka partnership arrangements can be made to encourage venture capital funds to create.