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very wealthy investors are presented with business opportunities which they can then decide to invest in for a portion of the business. So for example they might make an investment of $50,000, but in return would expect to be given ownership of the business to the tune of 25%.

Most venture capital is associated with either technological or financial companies, and generally takes place in the United states and Europe most prominently. The dot com boom in the 1990s was mainly caused by venture capitalism. However as can be seen in the resultant bust soon after the boom occurred, if one particular industry is over-invested in, then many of the businesses tend to fail.

The amount that is invested and the amount of control that is attained generally depends on the size of the business, what if any assets it already has, and how much investment is needed. If there are fewer investors, then generally the share that they will demand will be larger as they will each invest more of the capital that the business needs.

Most venture capital firms are very selective about what kind of investment they will make. Many companies of this nature in fact tend to have rules of operation which any potential new business has to meet before any investment is given. One such rule for example is that the returns for their initial investment should be made within 5-7 years. Also investments tend to be made in high growth markets only.

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