The One Fundamental Every Venture Capitalist Should Know

What makes Venture Capital so unique?

Derek Lundgren Bittar
Building Value Together

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Photo by Jonatan Pie on Unsplash

When promptly asked, most experienced investors don’t know an objective answer to this question. Some will state that Venture Capital (VC) is technology investments, other will say that it’s research and development (R&D) financing, and many will argue that it’s early-stage investments. None of these answers are wrong. However, all ignore the core fundamental behind VC investments.

What Differentiates Venture Capital from Other Sorts of Private Equity?

Venture Capital is a sort of Private Equity (PE) investment.

Private Equity is capital that is not noted on a public exchange. It is an illiquid asset class, what means that you can’t buy and sell at your free will. PE finances projects...

This story was originally published in The Startup, Medium’s publication followed by over +256,410 people.

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Derek L. Bittar is the co-founder and managing partner of IndicatorCapital. He writes and travels with the mission to help entrepreneurs thrive in emerging startup ecosystems.

Important Disclaimer
This story (or article) has been prepared for informational / entertainment purposes only, and is not intended to provide investment advice or any offer or sale of any investments. This story is the author’s opinion and is for information purposes only.

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co-founder @indicatorcap | Kauffman Fellow | Road Cyclist | On the mission to help entrepreneurs thrive in emerging startup ecosystems