Venture capital is an important source of equity for young, growing companies. Venture capitalists help these types of start-ups with limited operating history, but with great potential, who cannot raise funds through traditional means to obtain funds.
Venture capital is private equity capital provided by professional investors to new, growth businesses. This usually takes the form of cash in exchange for shares. Arthur Trueger is a venture capitalist who makes such investments.
Venture capitalists review the technical and business opportunities of the proposed company. Usually venture capitalists only invest in a small percentage of the business but continue to actively work with the company's management and contribute business savvy gained from previous experiences.
