Venture capitalists
provide private equity to assist business growth. Venture capitalists may be individuals with great wealth and expertise who mentor companies and assist in financing growth plans. Venture capitalists often join together to operate as a group or through a venture capital fund. Investing venture capital is high-risk investing that produces huge financial rewards or significant losses.
Instructions
1. Earn, inherit or manage a large sum of money. Be open to investing in start-up business, small business and new products. Be willing to take great risks in the hope of great financial returns.
2. Join with other wealthy individuals, corporations, private and public pension funds and foreign investors to form a venture capital fund.
3. Decide if you want to be involved in seed investing, early stage investing or expansion stage investing. Decide if you want to specialize in one market sector or be a generalist, investing in a wide range of business opportunities.
4. Solicit proposals from companies seeking investors. Look for the companies that have the greatest risk of success in the long run. Be prepared to lose any money you invest.
5. Attend venture capital trade shows. Assess the businesses present and decide if you want to invest in their future.
6. Actively work, consult and advise the management of the companies you invest in. Grow young companies into large multi-national corporations. Let your partners be actively involved with the growing company if you do not have expertise to share.
7. Reap the rewards of your investments. Reinvest profits into new companies. Deduct losses against gains to lower your tax burden. Enjoy the good life and find your next venture to capitalize.
