Thread 1/

I asked the question 2 days ago "What is Venture Capital to you"

A majority of the responses were predictably about Venture Capitalist with quite a bit of negativity

But let's talk about what Venture Capital actually is.

#vc #startup #funding #founders

2/

Venture Capital is an alternative asset class. Actually, it is the subset of the alternative asset class of Privet Equity

#vc #startup #funding #founders

3/

An Asset- is something containing economic value and/or future benefit.

An Asset Class- is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations

#vc #startup #funding #founders

4/

An alternative asset - is an investment that doesn't conform to the traditional asset classes of stock, bond, or certificate. They are usually used to describe more exotic investment options like works of art or investing in a business.

#vc #startup #funding #founders

5/

Private equity - is an alternative asset class and consists of capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies

#vc #startup #funding #founders

6/
Venture capital - is a form of private equity, financing that investors provide to startups that are believed to have long-term growth potential. Generally comes from well-off investors, investment banks and other financial institutions

#vc #startup #funding #founders

7/
Venture is an alternative asset class that is risky but with a high upside. All of this sound like a bunch of banker speak? Well because it is. Venture Capital is a form of investment to diversify the portfolio for HNW and financial institutions
#vc #startup #funding #founders

8/
Venture capitalists are money movers/ financial advisors for wealthy people and financial institutions. That's it. Nothing special, let's not make it more then what it is people. We make money for others in the form of investments in companies.

#vc #startup #funding #founders

9/
Does this mean that venture capitalist don't have their own nuances, of course we do. But we aren't much different from a financial advisor at an investment bank, just a different flavor of it that has somehow become cool.

#vc #startup #funding #founders