Venture
capital is capital provided by outside investors for
financing of new, growing or struggling businesses.
Venture capital investments generally are high risk
investments but offer the potential for above average
returns. A venture capitalist (VC) is a person who
makes such investments. A venture capital fund is
a pooled investment vehicle (often a partnership)
that primarily invests the financial capital of third-party
investors in enterprises that are too risky for the
standard capital markets or bank loans.Venture capital
general partners (also known as "venture capitalists"
or "VCs") may be former chief executives
at firms similar to those which the partnership funds.
Investors in venture capital funds (limited partners)
are typically large institutions with large amounts
of available capital, such as state and private pension
funds, university endowments, insurance companies,
and pooled investment vehicles.
Other positions at venture capital firms include venture
partners and entrepreneur-in-residence (EIR). Venture
partners "bring in deals" and receive income
only on deals they work on (as opposed to general
partners who receive income on all deals). |
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