What is Venture Capital Fund?
 
What is Venture Capital Fund?

Having your own business is one of the dreams and goal of the average person. Most of us would rather be their own boss than become someone else's employee. Unfortunately having your own business is not easy. Money is difficult to earn and more difficult to find, well unless you are already well off.

Starting your own business may take a lot of thinking, guts and money. Fortunately new entrepreneurs have other options in finding funds for their business. A venture capital fund is a private equity from outside investors.

People who provide these funds are called venture capitalists. These are a group of wealthy investors, financial institutions and investment banks that can gather investments. They invest in new businesses that are still starting in the industry. In return they get a portion of the equity and have a say in the company's decisions.

Business ventures

We often hear business ventures from rich people. Most investors who have enough money will embark on a limited partnership with a new company. This may sound good for aspiring entrepreneurs but it is not easy. Venture capitalists have now become more conscious and careful since the dotcom bust. They may not mind taking the risk but they have become more selective on where to invest their money.

Venture capitalists are usually executives from a firm. These investment professionals are referred to as limited partners. These are a group of people who have access to large sums of money for capital. These funds usually come from private and state pension funds, foundations, financial endowments, investment companies and other institutions.

Investors are usually grouped according to their interest. Most venture capitalists invest on starting companies. These companies are usually high-technology businesses such as electronics, computers, research and development. These funds usually last for ten years. The general partners or VCs receive a 2% management fee every year and require 20% of the net profits. They invest in more than one starting company for more returns in the long run.

Venture capitalists are very selective and most of the time has strict requirements. Apart from that they also have a say in the company's decisions which may not be good for the company. Venture capitalists are known to invest a lot of money in a short amount of time.

They may invest in advertising your company for magazines but are not exactly suited for your type of customers. Companies end up spending money at a faster rate before they can learn how to do it and earn positive returns in the process.

For other entrepreneurs who have a hard time getting their business plans approved they may turn to angel investors. Angel investors are individuals who also have access to large amount of capital and are willing to invest money on highly speculative start up companies. These businesses usually don't have a solid proof for their technology or have a great potential for its product or services at the start.


If you really need a venture capitalist fund make sure that you will pick a general partner that will work with you not just for the money. Venture capitalists can kick out the founders out of the way and bring in their trained CEOs. At the end of the day it is still a business that you can either work for or have it taken from you.

Search
Recommended Resources
Finding Angel Venture Capital in Honolulu More and more companies worldwide are seeking venture capital to finance their companies. This ...
read more

Pitfalls to Avoid in Applying for a Venture Capital Most entrepreneurs know what they have to do when searching for ...
read more

Astellas Venture Capital: Aim Big The foundation of every business, other than its product, is money. Earning money these days ...
read more

Venture Capital: The Basics A lot us have ideas, but the real challenge is making them a reality. There are ...
read more

Venture Capital - Knowing Your Funding Options Entrepreneurs and business experts have defined venture capital as a financing style between ...
read more

Venture Capital and Its Characteristics More businessmen are getting into venture capital. Whether as entrepreneurs or capitalists themselves, more people ...
read more

What the Definition of Venture Capital Won't Tell You Venture capital can be a rather complicated set-up for beginners in ...
read more

Advantage in New Orleans: capital for the Underdogs Finding a venture capital fund is easy. The problem is getting your ...
read more

Making a Difference with Non-Profit Venture Capital Most of us don't really care much about making a difference. Most of ...
read more

Venture Capital and Grants - Is It Right For Your Business? You've heard of some companies which were put up ...
read more

What You Need to Apply for a Venture Capital Many of us know that we need money to invest in ...
read more

Choosing the Best Venture Capital Consultant Finding a venture capital firm can be a taxing job. Imagine having to go ...
read more

What is a Venture Capital Course? Venture capital is one field that's making waves for almost two decades now. What ...
read more

The Advantages of Taking Venture Capital Courses When one speaks of venture capital, what usually comes to mind is its ...
read more

Venture Capital Cycle - How Does it Go? Venture capital is something that most aspiring entrepreneurs are eyeing. This is ...
read more

Venture Capital Firms in New York: Chase Your Dreams Starting a business is not as easy as it looks. If ...
read more

Kinds of Venture Capital Firms and What They Do With the growing popularity of venture capital comes the increase in ...
read more

Venture Capital Fund: A Viable Risk? Venture capital fund is considered one of the financing options of a business. A ...
read more

How to Raise Venture Capital Funding For one reason or another, you've considered putting up your own business using venture ...
read more

How and Where to Find Venture Capital Insurance Venture capital insurance is one topic which may seem complicated to most ...
read more

Kinds of Venture Capital Jobs Venture capital is one fast-expanding field in the industry. Every year, there is an increase ...
read more

Sources of Venture Capital News Venture capital is one industry that has been around for the past 60 years or ...
read more

Venture Capital - Things that You Should Know "Venture capital" is a term that is often heard in business discussions. ...
read more

What do Venture Capitalists Want? Venture capitalists come across a lot of companies that need funding everyday. Harsh as it ...
read more

What is Venture Capital Fund? Having your own business is one of the dreams and goal of the average person. ...
read more

Main Menu
Home
Sitemap


website monitoring
Articles
Finding Angel Venture Capital in Honolulu

Pitfalls to Avoid in Applying for a Venture Capital

Astellas Venture Capital: Aim Big

Venture Capital: The Basics

Venture Capital - Knowing Your Funding Options

Venture Capital and Its Characteristics

What the Definition of Venture Capital Won't Tell You

Advantage in New Orleans: capital for the Underdogs

Making a Difference with Non-Profit Venture Capital

Venture Capital and Grants - Is It Right For Your Business?

What You Need to Apply for a Venture Capital

Choosing the Best Venture Capital Consultant

What is a Venture Capital Course?

The Advantages of Taking Venture Capital Courses

Venture Capital Cycle - How Does it Go?

Venture Capital Firms in New York: Chase Your Dreams

Kinds of Venture Capital Firms and What They Do

Venture Capital Fund: A Viable Risk?

How to Raise Venture Capital Funding

How and Where to Find Venture Capital Insurance

Kinds of Venture Capital Jobs

Sources of Venture Capital News

Venture Capital - Things that You Should Know

What do Venture Capitalists Want?

What is Venture Capital Fund?

 

Disclaimer: The Publisher has strived to be as accurate and complete as possible in the creation of this website, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of the Internet.

This site is a common sense guide to What is Venture Capital Fund?. In practical advice websites, like anything else in life, there are no guarantees of income made. Readers are cautioned to reply on their own judgment about their individual circumstances to act accordingly.

This site is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in legal, business, accounting, and finance field.

Any perceived slights of specific people or organizations are unintentional.

Home| Sitemap|Budget Hosting

7.my © All Rights Reserved.