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> A venture capitalist (VC) is an investor who provides capital to firms that exhibit high growth potential in exchange for an equity stake. I have a friend wh
by DenisM 6y ago
> A venture capitalist (VC) is an investor who provides capital to firms that exhibit high growth potential in exchange for an equity stake.
I have a friend who invested $10k into another friend's startup. Is he a VC now? If you want a term that refers to all investors we already have one - it's "startup investors".
VCs are mercenaries - they invest someone else's money and they are responsible to return the money in 10 years or bust. They take board seats, they try to drive when things get tough, they try to push companies to the breaking point because 10 years are fast approaching.
This sets them apart from FFFs or Angels, for example. Or even from Investment Bankers.
- mrkurt 6y agoYou've redefined VC here, but not for any useful reason. Putting money into a risky company is "venture capital". It's literally capital for a new venture. The distinction you're making is between institutional and individual investors. It's worth talking about the difference between institutional and individual investors, but it's all venture capital.