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  • Writer's pictureSavannah Wright

What is Venture Capitalism?

If your like me venture capitalism sounds very boring and snobby. But it is actually very important in helping our environment. A venture capitalist is a private equity investor that provides capital to companies exhibiting high growth potential in exchange for an equity stake. This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets. Venture capitalists are willing to risk investing in such companies because they can earn a massive return on their investments if these companies are a success. VCs experience high rates of failure due to the uncertainty that is involved with new and unproven companies. This is so important because without all the funding for startups new ideas and environmental feats would be unable to happen.

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