Most people don’t understand how venture capital firms work. They only know that they make a lot of money, well, that is, “if” you happen to be one of the investors. If you invest in such a company, you can earn a lot of money from all the other members of the group.

Of course, this was true in Silicon Valley’s heyday, but many of those VC firms eventually went out of business, stopped soliciting funds, and never made much money after that—some could only get out by the skin of their teeth.

The goal of a venture capital firm is to make high-risk investments and demand outrageous rewards with a potential return of 1000% or more. This compensates the businesses that fail due to their high risk, with the few that succeed. Many people who read about venture capital deals view venture capital firms as companies that provide opportunities in the marketplace, starting companies, and providing jobs and trade.

Of course, venture capital firms are only interested in one thing; return on investment and opportunity for themselves. While, due to their excellent public relations, something they are known for, they might convince us that they are helping the economy recover and move forward by providing investment dollars to companies, well, that’s not exactly the whole story.

In the last three years, I have written about 20 articles on this topic and I always find it interesting because of the feedback I get from the general public. Often, they don’t really understand what venture capitalism is all about, and it also amazes me how many small business owners and new entrepreneurs don’t really understand what it entails when they connect with a venture capital firm.

Is “Venture Capitalism” Bad? Absolutely not; risk and reward are part of capitalism, and capitalism is good, and if you’ve read Ayn Rand’s Atlas Shrugged, you’ll know that. Still, there’s good and bad to everything, and perhaps the general public needs to know more than they do on this subject. Why not write some articles and tell them? Your articles will be well read and are of interest to our population. Please consider all this.

Did you know that the shortest sentence you can write is; “Am”

You learn something every day, if you just look at the world around you and think.