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What is a 'Venture Capitalist'
A venture capitalist is an investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets . Venture capitalists are willing to invest in such companies because they can earn a massive return on their investments if these companies are a success.
Venture capitalists also experience major losses when their picks fail, but these investors are typically wealthy enough that they can afford to take the risks associated with funding young, unproven companies that appear to have a great idea and a great management team.
BREAKING DOWN 'Venture Capitalist'
Well-known venture capitalists include Jim Breyer, an early Facebook (FB ) investor, Peter Fenton, an investor in Twitter ( TWTR), Peter Theil, the co-founder of PayPal ( PYPL) and Facebook's first investor, Jeremy Levine, the largest investor in Pinterest, and Chris Sacca, early investor in Twitter and ride-share company Uber.
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