From AllAfrica.com

Kenya will next month host a global venture capital conference in Mombasa, it was announced yesterday.

The theme of the three-day conference, organised by Aureos Capital in conjunction with Venture Capital Association, is the role of institutional investment as a catalyst for development.

Venture capitalists provide interest free equity financing to businesses because they become partial owners of the business.

Their investments are spread between five and 10 years after which they look for exit mechanisms that do not harm the business.

This takes the form of private sale of shareholding or a public listing at the stock exchange.

Euros, a venture capital fund has invested in Brookside Dairies and Athi River Mining.

Addressing a media briefing in Nairobi, the AVCA Kenya Chapter initiative leader, Mr Davinder Sikand, said more than 250 local and international delegates will participate in the conference.

It will deliberate on possible avenues for broadening the resource base for venture capitalists as well as press for tax incentives that encourage corporate entities to use venture capital.

Venture capitalists want to market venture capital and private equity as an asset class for institutional investors.

Sikand said the Sh100 billion-pension industry could have a profound impact on the venture capital industry and on the economy at large if a portion of it is converted to private equity.

He cited the example of USA where one in every ten jobs is created by venture capital investment.