Phase III-Venture Capital
In previous times these investors were referred to as “vulture” capitalists since they were seen to want the whole venture for a nominal investment. Since those days this capital source has matured and become more important to economic growth.
“Venture capitalists are not lenders, such as commercial banks, they are investors. Venture capital is not a variation from conventional bank financing. It is a separate and distinct industry which seeks to make a return on investment by finding good opportunities; not by sharing them.”
In a study of venture capital investors, Goslin and Barge found that the criteria for success were given as