Venture Capital

| Total Words: 390

Venture capital involves funding for various types of businesses that comes from private lenders. The risk may be too high involved for a typical lender to decide to offer the funds to the company. As a result, most venture capital lenders want in on a piece of the action. These investors are looking for a good possibility that can give them quite a return on their investment.

There are venture capital firms out there that do nothing but find such companies to involve themselves in. They have become million dollar companies without selling a single product on their own. The money that a venture capital investor puts up is often exchanged for stock in the company. This means they own part of the company and if they own enough of it they can even be part of the board that makes executive decisions.

Since there is a high risk involved in venture capital investments, you can be sure plenty of offers get turned away. A very lucrative deal has to be on the table in order for it to be accepted. These types of firms are in the business to make money so they want to reduce that risk as much as possible. They are going to require a great deal of information and research...

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