Thoughts on startups by investors that
fund them & entrepreneurs that run them

How does one go about becoming a Venture Capitalist?

As Ryan Lackey noted, having a lot of money is essentially irrelevant in this context of how to become a venture capitalist, because that is not the way venture capital works.

A venture capitalist (colloquially known as a VC) is a professional money manager who gets paid to manage *other* people’s money, not his or her own. [Typically, only 1% or so of the money in a VC fund would come from the general partners themselves.]

In contrast, rich people investing their personal funds into early stage companies are known as Angel Investors. For a longer discussion of the good and bad sides of angel investing, see my answer to: If I want to invest $5,000 as a new angel investor, what chances do I have of making a profit in 5 years?

*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *

Written by David S. Rose

user David S. Rose Founder and CEO,
Gust

David has been described as "the Father of Angel Investing in New York" by Crain's New York Business, & a "world conquering entrepreneur" by BusinessWeek. He is a serial entrepreneur & Inc 500 CEO who chairs New York Angels, one of the most active angel investment groups. David is also CEO of Gust.

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