Venture Capitalism

Information: Jackson Ensley


What is Venture Capitalism
  • Venture capital is money or other resources called capitol, which is invested in a project in which there is a substantial element of risk, typically a new or expanding business.

Who's Investing
  •  Venture capital is generally provided by individuals with high net worth.​
  • These individuals are called "angel investors"​
  • The angel will then become an involved partner in the company.​
  • Capital is also sometimes provided by venture capital firms (VCFs), which similarly provide capital to entrepreneurs and start-ups.​


What's Being Traded

  • Angel investors and VCF's invest in the company in exchange for equity in the company.​
  • Equity is ownership of a percentage in the company.​
  • For example, an investor may invest $250,000 in a company in exchange for 15% of the company. ​
  • This means that 15% of all profits will belong to the investor. 



Shark Tank


  • Shark Tank is a show that gives a great example of venture capitalism.​
  • Entrepreneurs go on the show and pitch their ideas to a group of diverse, multi-millionaires.​
  • The "sharks" come from many different backgrounds, such as fashion, and technology. ​
  • The sharks can either make an offer, or pass on the deal if they're not interested. ​
  • The show has won many awards, and has been running for several seasons.

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