Even if parents are wealthy, I don't think it's wise for them to throw large sums of money at businesses started by their kids. At least if you're a venture ca

Even if parents are wealthy, I don't think it's wise for them to throw large sums of money at businesses started by their kids. At least if you're a venture capitalist, you have a large portfolio of businesses, and if 1% of them become unicorns, you might win. But a parent acting as a VC for one child's business is almost certain to lose their entire investment. Other advantages that VCs have over parents, besides diversification: - VCs are playing mostly with other peoples' money. - They are more selective about who qualifies to receive funding, and better equipped to evaluate whether a business plan has any promise. - They can offer guidance to founders on how to run their businesses. As someone whose parents didn't have a lot of money, I don't think I missed out on anything by not having parents who could fund a business that I started. On the contrary, I think I benefited from having to work my way through college and learning how to live independently off my own earnings.