Definition of Venture Capitalist



Venture capitalists are well-off investors or group of investors that provide finance to new businesses that are not big enough to get listed and raise capital from public. Venture capitalists usually take high risks by investing with entrepreneurs that often result high failures, but if succeeded the returns are exceptionally high.

 


The venture capitalists usually form a partnership and all the venture capitalists are a partner to it. Then this pool of monies is invested in venture capitalist funds run by venture capital firms, which buys private equity from new companies. The average tenure of venture capital deals is 2 years after which the venture capitalists exit from the company by selling the stock at a higher price.  


View More Corporate Finance Definitions