Although I invest largely in index funds these days (I started out investing in individual stock and actively managed but the results were not particularly impressive) I also have a small amount invested in a private equity fund (IPE), and I will probably take up the 124,000 $1 options I have that expire at the end of this month. This is my first dabble in the field of venture capital - a type of private equity capital provided by professional, outside investors to new, small businesses that are deemed to have potential. Venture capital is generally made as a cash contribution made in exchange for unlisted (private) shares in the investee company. Such investments are usually high risk, but offer the potential for above-average returns.
A venture capitalist (VC) is a person who makes such investments on a large scale. I was interested to find out that the site www.spock.com has several pages listing venture capitalists. Here you can browse through the details of some of these risk-taking private investors, such as Josh Kopelman, Joichi Ito and Roelof Botha. You can find out where they got their money from, and, in some cases, what sort of investments they are making. It's funny and kind of sad that most of the venture capitalists listed are male, and that the few women listed don't list their age!
Copyright Enough Wealth 2007