Venture Capital Tips & Advice

Video Transcript

"This is Financial Adviser Patrick Munro talking about the definition of "venture capital". We live in a capitalistic society in America and it's important to know that what greases those wheels of creativity is capital. When entrepreneurs come up with an idea that they really believe there is a market for, many times they're rich on ideas and short on money. On the other hand there's individuals that have a lot of money that are short on ideas. And so the two come together in the format of venture capital. The individuals with the money put up that money for a predetermined rate of return and the entrepreneurs receive an injection of money that they know what to do with, that is to say grow their idea or business. And it's a great marriage between the two because if the idea takes off, as it oftentimes does, the investors become the better for it and the entrepreneurs, of course, have grown and succeeded in their venture, thus the name "venture capital". This is Patrick Munro, Financial Adviser, talking about the importance and benefits of venture capital."