What specifically is venture capital?
The Venture Capital (VC) Industry is a major source of funding for the entrepreneurial community. Venture Capital is capital provided by outside investors for financing of new or high growth businesses. Venture capital investments generally are high risk investments but offer the potential for above average returns. In exchange for the investment, the VC receives an equity stake in the business. The VC also helps the business develop its management team, and takes seats on the board of the company. VCs are typically interested in making a few large investments, due to the manpower needed to support each investment (recruiting and board seats). They focus not only on the business opportunity that is presented to them, but closely on the management team that is offered.
The Venture Capital (VC) Industry is a major source of funding for the entrepreneurial community. Venture capital is capital provided by outside investors for financing of new or high-growth businesses. Venture capital investments are generally high-risk investments but offer the potential for above average returns. In exchange for the investment, a venture capitalist (VC) receives an equity stake in the business. The VC also helps the business develop its management team, and takes seats on the board of the company. VCs are typically interested in making a few large investments, due to the manpower needed to support each investment (recruiting and board seats). They focus not only on the business opportunity that is presented to them, but closely on the management team that is offered.
