Venture Capitalist Definition

A venture capitalist is an investor who provides capital to startup companies and small businesses with high growth potential. Venture capitalists are typically interested in high-risk, high-reward investments, and they often take an active role in the management of the companies they invest in.

Venture capitalists typically invest in companies that are in their early stages of development, when the risk of failure is highest but the potential for growth is also greatest. Venture capitalists usually seek a seat on the board of directors and a say in major strategic decisions so that they can provide guidance and support to help the company succeed.

While venture capitalists take on a great deal of risk, they also stand to make a substantial return on their investment if the company is successful. For this reason, venture capitalists are often very selective about the companies they choose to invest in. They typically conduct extensive research and due diligence before making any investment decision.