What is Venture Capital?

Venture capital is important for start up companies that need extra financing to grow quickly. Overall, venture capital is financial capital for these early state companies. One major criteria for this financing is whether or not the company has high potential for growth and scalability. Venture capital is typically provided by a venture capital fund or venture capital firm, and these make money by owning a percentage of equity in the company that it has invested in. The most common business sectors that receive venture capital include high technology industries such as information technoogy, software, and biotechnology. The amount of money that venture capital typically deals with ranges from about one million dollars to as high as fifteen million. While venture capital can be helpful for startups, it is only given to very few applicants due to the high risks and high investment amount.


Photo source Christopher Isherwood


This entry was posted on Tuesday, December 21st, 2010 at 11:38 pm and is filed under Venture Capital. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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