What is Venture Capital?

Critically-acclaimed bestselling business author Kim Lavine

Critically-acclaimed bestselling business author Kim Lavine

by Kim Lavine

  • Private equity—money—that comes from investors willing to risk capital on more speculative ventures.
  • Usually reserved for second-stage companies in a high growth mode, or start-ups with an exceptionally strong business plan.
  • A typical venture capital investment usually requires sale of 25 percent to 55 percent of the company to investors.
  • Some VC firms have the money, and some are brokers who raise it.