What is a venture Capital and what is the role of a venture capitalist?
At what point can a person become a venture captalist and what authorisations do they have over the company they have invested in? I would also like know how a venture capital would be different from any other investment
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- http://en.wikipedia.org/wiki/Venture_capitalist
- Venture Capital is an investment in the early stages of high-growth start-ups. It is typicallly in high-technology firms. A good venture capitalist not only puts in his money but also gives valuable strategic advice and guidance to take the company to greater heights faster. In return, the young entrepreneur may give the VC a board seat on his company. As a result, the venture capitalist will have to be someone who has extensive knowledge of various industries and know how they perform over the years, the trends and much valuable list of contacts. A venture capital investment, unlike a regular stock investment, is much much more riskier but could potentially be much much more rewarding and fulfilling. Out of every 10 deals a VC invests in, 2 are likely to bring in the VC big money. Depending on the VC's negotiations with the entrepreneur, the VC can have a controlling power over the entity, depending on what majority of the stock equity he holds in the company.
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