What is a Venture
A venture capitalist is a business
person looking to invest in a fairly young company, in hopes that the
company will grow and reap high financial returns, earning back five or
ten times back the original investment (and sometimes even more than that).
Venture capitalists are often
willing to take more considerable risks in a business than a bank would,
so it is a very viable source of money for businesses.
A venture capitalist, also
commonly known as a VC, may not be the one actually bringing the money
to the table for a new investment, but often act on the behalf of a wealthy
investor who doesn't want to deal with finding the diamond in the rough.
Venture capitalists generally
only invest in a small percentage of the businesses they consider. They
look for quick returns, ideally in a few years, but as long as ten years.
Average is anywhere between three and seven years.