4/7/2021 Tip: How Venture Capitalists Make Money | Growthink

4/7/2021 Tip: How Venture Capitalists Make Money

Today’s Quote

“The secret of happiness is freedom. The secret of freedom is courage.”
~ Thucydides

 

Today’s Tip

Venture capitalists (VCs), unlike angel investors, are professional investors that invest other people’s money. Similar to angel investors, their goal is to earn a solid return on this money. In fact, VCs are judged and compensated by the performance of their investments. As a result, they are extremely rigorous in their investment decision-making process.

Here’s how VCs earn returns for their investors:

  1. Finding high growth companies
  2. Making investments in them at favorable terms
  3. Guiding and nurturing them
  4. Enacting a liquidity event. This typically occurs by selling the company or taking it public.

Understanding a VC’s motivations/goals is helpful when raising this coveted form of funding.

 

Today’s Resource

How To Raise Millions in Venture Capital

Would millions in venture capital funding allow you to grow your business?

How to millions in venture capital <— Learn How

Since 1999, I’ve personally helped my clients raise millions in venture capital. And on this page, I walk you through the major steps you must take to successfully raise $1 million or more in venture funding, plus the biggest mistake to avoid.

How to millions in venture capital <— 

 

Trivia

Today’s Question: Where did Dell Computer’s first advertisement appear?

Previous Question: Where did ALL 3 founders of Apple (Jobs, Wozniak and a gentleman named Ron Wayne) work before forming Apple?

Answer: Atari

All 3 founders worked at Atari before forming Apple.

At the time, Atari was a leader in the video game field. Most great entrepreneurs gained experience from working at other jobs and/or getting mentors and advisors with relevant experience and expertise.

 

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