Venture Capitalists foster growth in companies through their involvement in the management, strategic marketing and planning of the companies they fund. They are entrepreneurs first and financiers second.
Venture Capitalists
generally: · Finance new and rapidly growing companies; · Purchase equity securities; · Assist in the development of new products or services; · Take higher risks with the expectation of higher rewards; · Carefully screen the technical and business merits of the proposed company. · Invest in a small percentage of the businesses they review. · Have a long-term perspective. · Actively work with the company's management by contributing their experience and business savvy gained from helping other companies with similar growth challenges. · Mitigate the risk of venture investing by developing a portfolio of young companies in a single venture fund. · Often co-invest with other professional venture capital firms, managing multiple funds simultaneously. |