Private venture capital comes from various investors and even firms that want to make money from the businesses other people have. They offer the funding that the business needs in exchange for a piece of it. They are given a percentage of the company in the form of stocks. They can hang on to them and reap the dividends as the company makes money or they can choose to sell them off.
Private venture capital is often sought after by people that arent able to secure a regular business loan. In most instances it is due to the high amount of money they are asking for as well as the amount of risk involved in that type of business. Too many lenders have seen money they authorized never returned because the businesses failed. As a result they have had to tighten the purse strings and turn away many peoples requests for funding.
Private ventures understand the high risk involved if they put up the capital for these types of businesses. However, they also understand the amount of money they can make when those types of businesses do start to make money. The fact that a company is high risk doesnt mean it wont be successful.
There are many different places where...