What is the role of a venture capitalist in helping to secure funding for a business?

Venture Capital is a widely used phrase that doesn't have an exact definition. Typically, venture capital refers to an investment fund or partnership 鈥?the "venture fund" or "venture capitalist" 鈥?that focuses on investing in promising start-up and emerging companies. Venture capitalists have invested n some of today's most famous companies, including Apple, Genentech, Intel, and Compaq. Typically, this investment is in company stock, and the venture capitalist gets a share in the company for the money put up.

In addition to supplying the company with money, the venture capitalist also assists in its business planning, by bringing industry knowledge to the table, experience in growing businesses, and expertise in incorporation and going public. The venture capitalist's primary motive is to make a significant return on their investment. The track record of venture capitalists directly relates to the success they have in raising money for their partnership to invest in promising companies.

Beware 鈥?venture capitalists are only interested in businesses that can grow very BIG! So if you're a corner grocery store, sushi bar, or lemonade stand, forget it unless you plan to grow to a chain of 500.

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　　Venture Investment 　　Venture Capitalist 　　Venture Capital 　　VC Fund 　　Vanguard Fund 　　Value Investment

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