Venture Captialist

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Submitted By mrkenmlittle
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Venture Capitalist
ENGL106-Week 2 IP
American Intercontinental University
Kendrick Little
April 22, 2012

Abstract This is a paper to define and explain what venture capitalism is as well as what venture capitalists do in their business.

Venture Capitalist

An venture capitalist a person who provides capital is for the financing of growing, a new upstarting or struggling businesses. Venture capitalists are the general partners in the venture capitalist process. The capital itself provides long term finances to help companies that are not as lucrative as other large companies and it just simply keeps the company from failing. Venture capital can primarily help with a lot of things such as buying out a company, save a struggling one, upstart a new or expand an existing one. The venture capitalist profit is dependent solely on the company they have invested in, if the company is showing good signs of turnaround or having a good amount of success then the venture capitalist has made a good investment and will benefit from the success financially. Venture capitalist usually works very closely with the partner in the venture capital firm which develops a partnership. The general partners of the company role serves as the managers of the firm and will also in some cases take on the role as advisor to the vc’s to which the funds are made. In the Unites States of America venture capital firms can be set up or structured as limitied liability companies, by doing so the firm acting managers are known as managing members. Limited partners are what the investors in venture capital funds are known as. This body makes up a wide range of partners consisting of high net worth individuals and institutions with large amounts of available capital, such as state and private pension funds, university financial endowments, foundations, insurance companies, and pooled…...

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