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What do venture capitalists do?

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What do venture capitalists do? Describe the function of the limited partner in the Venture Capital world.

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Solution Summary

This solution explains what venture capitalists do and the function of a limited partner in the venture capital world.

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Venture capitalists provide money to businesses, often in the start up or early stage of development. Typically venture capitalists are involved in high risk/high potential companies. Venture capitalist funding is often preferred because traditional methods of raising funds have been exhausted (using own funds, borrowing from friends or a bank) or unavailable. Typically venture capital investment occurs after the seed funding, as more money is needed for ...

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Sally Baldwin, Ed.D
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  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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