How does one become a venture capitalist?
Asked by
tablack01 (
313)
July 16th, 2010
from iPhone
I have been thinking about different careers people have in business and one that is most interesting is venture capital. Is this restricted to people who have a lot of cash, are some of their ventures financed by bank or are these people able to raise money through personal contacts?
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10 Answers
you could get a personal or buisness loan from a rich uncle…or find investment partners….or start small (real small)
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Interestingly enough this website is funded by venture capital money.
I’m pretty sure you need to have a decent amount of capital to tap into and parcel out.
I believe you must have capital with which to venture; either your own or a smooth tongue with which to talk others out of theirs.
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My dad is a venture capitalist and becoming one is not exactly easy (from what I know, though I’m not sure exactly how he became one). Being a venture capitalist is not really something you do right out of college. Venture capitalists typically have experience with other economic occupations. They often work for companies backed by venture capital and get to know venture capitalists that way. I know my dad definitely became acquainted with other VCs before he actually became one. My dad had a few other jobs before he joined a VC firm and then started his own firm. And he was definitely not born into wealth or anything like that, but he had a decent amount of money from other jobs before becoming a VC.
What types of professions did your dad have before he started captial investing full time?
A venture capitalist is generally a seasoned executive looking for a place to invest his money. He will always do a lot of investigation, weighing risk factors with opportunities. He will meet with a lot of clients, bankers and investment managers to help identify the entrepreneurs who are most in keeping with his investment goals.
It is also possible to become a venture capitalist through a micro credit project, lending small amounts of money to small business people, usually in emerging economic countries.
You need to learn a lot about innovation and technology. The challenge is to learn how to pick the right clients. Only very few are lucky enough to have Larry Page and Sergei Brin waltzing into their office. And you never know beforehand how it will turn out. You can lose a lot of money too. It’s a risky but important business.
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