Venture Capital VOODOO
In simple terms, venture capitalists are usually comprised of a group of investors with a lot of funds, ready to invest in any business venture that might present good possibilities of success.
This form of investment can come in the form of one very wealthy individual or from a group of wealthy individuals, intent on investing into a venture that has promising prospects.
There are also companies designed and set up for the purpose of sourcing for and investing in startup businesses and already small successful businesses that may be looking to expand their operation, but lack the financial backing needed. The venture capitalist play a very important role in extending such financial help to those looking for financial backing but don’t have the proper credential to approach establishments such as banks, government loan institutions or finance houses.
Besides being noted for their financial capabilities, the venture capitalists can also provide other skills such as managerial and technical expertise. These too may provide invaluable assistance to those lacking in this area but still possess a winning formula for making phenomenal money.
Most venture capitalist financing sources come from a pool of wealthy investors, investments banks and other financial institutions that pool their mainly monetary resources to form investments arms that popularly extend financial assistance to promising business ventures. However because of the nature the extension, there is also what may seem like a disadvantage tagged to such assistance and this would come in the form of the said investors wanting to play an active in the business entity. For most business ventures seeking financial assistance, this form of “interference” would present an ideal situation or solution.
Thus, in addition to actually having some equity in the company, the venture capitalist expects to be involved in some level or another to ensure the investments are going in the direction intended.