Precaution on Venture Capital

According to wiki, Venture capital (also known as VC or Venture) is a type of private equity capital typically provided to early-stage, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. It is typical for venture capital investors to identify and back companies in high technology industries such as biotechnology and ICT.

Venture capital is for high potential growth companies, usually in the technology industry. Venture capital firms typically pool the funds of wealthy investors and institutional investors. While there is no set limits on the amount that a venture firm will invest, it is usually between one and two million dollars. This type of funding usually goes to a business that is already operating and showing some early promise. As venture capital firms become involved in your business, they will certainly take an active role in management and be looking to maintain seats on the Board of Directors.

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