What is Venture Capitalism?

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Venture Capitalism and other Entrepreneur topics.

Where do you find investors?

What is Venture Capitalism?

By definition, venture capitalism is a monetary system based on the trade of wealth, in other words, a business or an individual, and the people or companies invest in an innovative enterprise where potential profits are large.

In more simple terms, it is the opportunity to invest in a young company that has the potential to grow into a big enterprise. Imagine someone who runs a great hamburger restaurant. He wants to expand his business by opening a restaurant in another city. He may ask for investors to invest in his company. In exchange, when the company succeeds and finds a profit, the investor may see a return on his investment with interest or he shares a percentage of the profits.



Nobody has commented on this tip yet. Be the first.


URL: (optional)


Not finding the advice and tips you need on this Entrepreneur Tip Site? Request a Tip Now!

Guru Spotlight
Carma Spence-Pothitt