What are Venture Capitalists??

Updated: Feb 10

I am sure in recent times you might have come across the word "Venture Capitalist"


Here in this article, let us try to understand what exactly is a venture capitalist:


Generally, venture capitalists are a group of individuals formed as a Firm (LLP's most commonly) looking for highly emerging startups to invest in exchange for ownership generally in the form of Equity.



The partners of the firm collectively invest in the Venture capital fund (VC Fund) which is used to make investments.


The VC fund managers take the decision of investing the VC fund in potential startups with high traction and their ability to generate returns.


Generally, A startup requires Venture capital when it is out of funds raised from Angel Investors and Seed Funding.


There involves a series of fundraising from Venture capitalists. Generally, Series A, B & C.


Most of these investments take a lot of time to generate returns because of the unestablished nature of startup businesses. But in long term, there are greater chances of high returns.


Examples:

  1. Nexus Venture Partners

  2. Sequoia Capital





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