Venture Capital Limited Partnership

Venture capital limited partnership is a limited partnership that invests in small businesses with high growth potential.

A venture capital limited partnership seeks out small businesses in markets with high potential for growth. A partnership is a business entity made up of one or more general partners. These partners pool their money together to invest in small businesses. Most of the investments they make are high-risk investments, but the potential for a greater return on investment is why they make these investments. Often times the venture capital limited partnership will become a percentage owner of the firm they are investing in. Sometimes the venture capital firm will invest using money they have been entrusted with from a large number of third-party investors.

Banks and other regular lending institutions may turn down a company because there is too much risk for them to loan money to them. That is when a venture capitalist will often jump in because their high-risk investment could bring a high return. The most common industry for venture capital firms to invest in is technology.

onEntrepreneur

onEntrepreneur is an online magazine centered on the world of business, entrepreneurship, finance, marketing, technology and much more. We are regularly updated – sign up with our newsletter to send the updates directly to your inbox.

Leave a Reply

Your email address will not be published.