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Nothing Ventured, Nothing Gained

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Nothing Ventured, Nothing Gained
Nothing ventured, noting gained

«Nothing ventured, nothing gained” idiom means that it is necessary to take risks in order to achieve something. Speaking about investments, you have to invest your own money somewhere to make financial gains. There are many different types of investors such as venture capitalists investing in start-ups, investment banks or insurance companies investing in securities portfolios, and just people investing in property, fine art, antiques, rare books and wine. I’m would like to describe each type of investors in detail.

At first, a few words about venture capital. If you are novice entrepreneur who is willing to start your own business and feel that you have a need in start-up capital, you have a chance to get it from venture capitalists. Obtaining venture capital is substantially different from raising debt or a loan from a lender. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of the success or failure of a business. Venture capital is invested in exchange for an equity stake in the business. As a shareholder, the venture capitalist's return is dependent on the growth and profitability of the business. This return is generally earned when the venture capitalist "exits" by selling its shares when the business is sold to another owner. Venture capitalists are typically very selective in deciding what to invest in; a fund may invest in one in four hundred opportunities presented to it, looking for the extremely rare qualities, innovative technology, potential for rapid growth, a well-developed business model, and an impressive management team. The is also another type of investors called business angels. Angels typically invest their own funds, unlike venture capitalists, who manage the pooled money of others in a professionally-managed fund. The example of business anglel is co-founder of Microsoft Paul Allen who is investing in movies, art, rock music and space travel after he got

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