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r/investingr/investing· u/CSDragon· 2d ago 0

What is the name for new business creation investing?

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Author asks for the name of a fund that creates new businesses from scratch based on market gaps, unlike PE or VC.

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What is the name for, or is there even a name for, a type of fund that takes investment money uses it to create new businesses?

I'm not asking about Private Equity, which buys up established companies and either holds them as a revenue-generating asset or tries to flip them.

Nor Venture Capital, which takes money and invests in up-and-coming businesses.

I'm talking about something like: "We have identified an open Retail Lot, and market research indicates this area has demand for a Japanese restaurant that is not being met", so the fund creates a new restaurant business in that location and builds it up as a revenue-generating asset, which can either be retained or sold like Private Equity. Then it moves on to another retail lot and identifies a doctor's office is needed in that location, etc.

Does such a thing exist? If so what is it called? If not, why not?

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