Get advice, answers, and information

What Are Venture Capitalists?

Venture capitalists are individuals, or groups, that invest in early funding rounds. Compared to angel investors, venture capitalists typically invest more money at a slightly later phase in a business. This type of investor expect you to show you have a solid business plan. A venture capitalist also wants to see a high return of profit.


Venture capitalists trade funding for securing equity capital, or a share in your company. They are betting that the share will be worth more within time and will wait to get a return on the investment.

Giving up that equity capital means giving up some ownership or say in the company. Venture capitalists may also want a steeper return on their investment than what the interest rate may be on a business loan. They may also require some influence over the company, such as a seat on the board.