Find Venture Capital

Venture capital is money invested in new, growing, or struggling businesses to help them conduct everyday business. Venture capital is similar to angel capital, except that whereas angel capital generally comes from one or more individuals investing out of pocket, venture capital usually comes from a pooled fund of third-party investors. These third-party investors are known as venture capitalists.

Venture capital is a risky investment, but it also has a high rate of return, so a new business may be able to find venture capital even when other means of funding, such as loans or other types of investments, are unavailable. This is not to say that it is easy to find venture capital by any means. Since venture capital is considered such a risky investment, venture capitalists tend to be very selective about the companies in which they invest and will only put money into businesses with a high likelihood for growth.

In addition to the return on their investment (about 20 percent), venture capitalists will usually receive an additional two percent "management fee." Venture capitalists may be made general partners in the businesses in which they invest, and as such have some degree of say in how the company is run.