Venture capitalists are financial professionals who finance innovative but potentially risky new companies and their projects. This financing may be concluded by loans, direct investments, or other financial manoeuvering between a company, the venture capitalist, and third party investors.
Venture capitalists often work for corporate entities that invest their clients’ money in businesses that often have high risk factors. These businesses may be startup companies that cannot find funding through more traditional means or firms that seek funding to fuel projected growth.
Venture capitalist clients may include trust funds, pension funds, individuals or other types of institutions. Venture capitalists amass and invest large sums of money, typically funding scientific and technological start-up projects with transformative potential.
Venture capitalists analyse the financial strength and credit risk of potential investments, and research the potential market for a company’s offering.