About Venture Capital

Venture capital is a type of private equity capital typically provided by professional, outside investors to new, growth businesses. Venture capital investments are generally made as cash in exchange for shares in the invested company. A venture capitalist (VC) is a person who makes such investments. A venture capital fund is a pooled investment vehicle (often a limited partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans.

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Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies, or ventures, with limited operating history, who cannot raise funds through a debt issue. The downside for entrepreneurs is that venture capitalists usually get a say in company decisions, in addition to a portion of the equity.

  1. Mentioned In 2 Articles

  2. Where Have All The Good Mentors Gone?

    Explore Article peHUB (Jan 12 2010)

    ...o the sunset. Two of the more successful companies in Boston in the 1980s were ... For decades, the venture capital industry was like a Yale Secret Society - very clubby, discrete and opaque. VCs had all the power i... (Read Full Article)

    Comment on Article Mentions:   CEO   Venture Capital   London

  3. Are You A Founder, CEO, or Entrepreneur? « Thinking About Thinking

    Explore Article Thinking About Thinking (Nov 6 2009)

    ...y, they're all true, but let's set aside the ... Are You A Founder, CEO, or Entrepreneur? Posted in Venture Capital by larrycheng on November 6, 2009 This post is for all of you out there who are both founder and CE... (Read Full Article)

    Comment on Article Mentions:   CEO   Venture Capital

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