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https://boards.fool.com/a-venture-capitalist-provides-the-seed-money-for-14578338.aspx
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| Subject: Re: term | Date: 3/19/2001 8:42 AM | |
| Author: rwoodsco | Number: 883 of 2244 | |
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A venture capitalist provides the seed money for someone else's ideas. For example, If I have a great idea for selling pet supplies online using a cute sock puppet as a mascot, I might write up a business plan and send it to some venture capitalists (VCs). If they agree with me that this idea's going to be successful, then they might give me $X Million to start my business in exchange for Y% of my new company. VCs are also often involved in later stages of a startup's development, including the IPO. The key idea is that a venture capitalist provides capital to ventures that desire $$$ to develop/expand in exchange for equity in the venture. hth, Bobby |
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