By keely aouga
Small startup companies can collaborate with investors, such as venture capitalists, to help them secure the funding they require.
A venture capitalist (VC) is defined as an investor who provides funding to startups and emerging companies, typically in exchange for an equity stake.
The investors on "Shark Tank," such as Kevin O'Leary are generally considered venture capitalists.
The financial giants play a critical role in fostering innovation and economic growth for early-stage companies.
Typically the companies that venture capitalists work with don't have access to the equities markets.
Oftentimes, they invest in companies in the biopharmaceuticals and clean energy technology fields, to name a few.
Venture capitalists typically work as part of a team at a venture capital firm, researching and meeting with promising companies.
It is likely that VCs have several investments at the same time with the assumption that at least one of them may grow to provide a large return-on-investment.
It is important to note that venture capitalists and investment bankers play different roles financially.
Investment bankers act as advisers, and they make their money primarily by charging clients for advice.
Venture capitalists prefer to invest in the company early in the process, whereas investment bankers offer services once the company has reached full maturity.