Using Venture Capital to Raise Capital for Your Business
Venture capital is a source of funding that may be available to emerging or expanding businesses. Venture capital may be used for start-up costs, although it is generally more readily available for the growth and expansion needs of an existing business. Venture capital may come from individuals, small investment groups, professionally managed pools and partnerships, or even insurance companies. Such venture capitalists may concentrate their investments in a certain market segment, such as the computer or high-tech industry. Often, venture capitalists can supply funding for projects considered too risky by banks, but they do not take these risks unless the potential reward is significant.