Venture Capitalists are often called Vulture Capitalists and until you read the book: Confessions of a Venture Capitalist, Inside the high-stakes world of start-up financing by Ruthann Quindlen; well you probably will never understand how they got that slanderous title. In the book Ruthann explains what it was like working in Silicon Valley in a Venture Capital Company prior to the dot com bubble burst.
If you are considering getting venture capital for your startup company then perhaps you should read this book. After all would you like to sit down for a cup of coffee with a venture capitalist who has been in the industry for years before you go in pitch your business plan? In the book they describe how venture capitalists will work with many companies at one time expecting that one or two may make it to a huge payout. The rest they expect to either break even or lose money and they will eventually dump.
The world of venture capitalists is about return on investment in a very short time period and they are not looking for just making a profit they are looking to make 10 times or more the money they invested. There are many venture capital firms and often they bet on the jockey and not just the horse. A business idea or concept may be very good, but if the entrepreneur is unworkable the venture capitalists will have to pass. Please consider all this in 2006.
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