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Venture Capitalist


Definition

An individual that has a specialty in understanding start-up or early stage companies and can provide support to that company in the form of financing, strategic advice, and managerial know-how. Venture capitalists are often generalists with a vast amount of subject matter knowledge in certain niche focus areas for their fund.

Using the term Venture Capitalist :

The environmental engineer decided to transition from his position at the U.S. Department of Energy to a new venture capital firm focused on clean technology. He has always had a keen interest in new energy technologies and was now fulfilling his dream of working with (and investing in) the best new companies in the industry.

Pay Special Attention To :

A venture capitalist may have many failed investments in his portfolio. In fact, that is the nature of the game and many failed investments in a venture portfolio do not necessarily indicate failure for the fund or the venture capitalist. In very early stage companies, even after much due diligence is performed, failure is often the final outcome. However, through this process of "sacrificing capital" society and research advances as we would never know what would work and what would not if we did not invest and try to push progress ahead.

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Related terms

venture capital , private equity