I don't. So, I was wondering: What are my options. I can start off small, right? If I choose to proceed. Where do venture capitalist look for ventures to invest in? Thanks and God Bless:)
2007-05-04 17:00:24 · 7 answers · asked by ۞An Amazing Life۞ 3 in Business & Finance ➔ Investing
Venture capital firms are almost always organized as a limited partnership. The firm takes the role of the general partner, and seeks out wealthy individuals who are willing to be the limited partners. The wealthy individuals supply the firm with the money to invest in the start-up ventures. The VC firm supplies the management and investing expertise and assumes the bulk of the risk.
The firm will make its money off of fees and a percentage of any gain. The downside is that the general partner is the last to get paid. As you get money back from the investments, the first obligation is to repay the capital that your investors put up. Only then can the VC firm begin to participate in the upside. No upside = no income.
So, as the previous responder said, you don't need money. You need access to people with money that they are going to be willing to give to you to invest in start up businesses on their behalf.
And as far as where you find start up firms in need of equity capital...you won't have to look too far. If you have money to give out, people have a way of finding you.
2007-05-04 23:20:07 · answer #1 · answered by string_bean75 2 · 0⤊ 0⤋
You can borrow money to invest in anything, but you risk losing your capital and interest if your investment fails.
My advice is: DO THE RESEARCH. Visit websites devoted to economics and the stock market, buy and study economic review publications like the Wall Street Journal. Watch the stock market for at least a couple of months to see what trends are running. Take a look at world economic events, as they effect how the economy moves. Then only invest money you can afford to lose. Good luck, you'll need it.
2007-05-04 17:26:28 · answer #2 · answered by miketwemlow 3 · 0⤊ 0⤋
To be a venture capitalist, you don't need money, you need access to money.. Y ou need to have access to a population of investors who are willing, able and interested in giving you substantial funds to invest. So start out by making friends with lots of really rich people.
2007-05-04 18:50:11 · answer #3 · answered by squeezie_1999 7 · 0⤊ 0⤋
the definition of a venture capitalist is a person with capital to invest. if you want to learn the business, work for a venture firm, or an angel investor network. i would suggest the latter, they are much more willing to share their secrets.
2007-05-04 18:24:36 · answer #4 · answered by Nicky2Fists 1 · 1⤊ 0⤋
Get a job at a Ven Cap firm for starters.
2007-05-04 17:21:09 · answer #5 · answered by SMEAC 4 · 1⤊ 0⤋
They wont tell you otherwise they got another competitor in the arena. It's better to be entrepreneur to grow well a business
2007-05-04 17:08:29 · answer #6 · answered by Dosage 3 · 0⤊ 0⤋
Do you have at least an MBA?
2007-05-05 06:33:09 · answer #7 · answered by Anonymous · 0⤊ 1⤋