A little quick sprout information on who and what venture capitalists are do. Venture capitalists are basically investors with lots of money, and the seek a share in companies with their large amount of cash. As it is obvious, starting a company requires initial funding for marketing, assets, etc. Sure, why would I need investors when I go to a bank? Well, the answer isn’t that simple, because banks first of all don’t buy themselves in just about any plan. Second, they can’t provide you extremely large funds in a period of short time. Third, they charge you interest rates, at a off the roof level. So, if your company is losing money in its first year, you are already in debt.

However, a venture capitalists is investing at his own risk. You give him a share. The google investors were quite happy with their ROI. Rate of return.

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