![]() The smaller deal flow and the part-time nature of their investment activity mean that entrepreneurs can sometimes get funding from an adventure capitalist they could not otherwise obtain from a venture capital firm. ![]() This, coupled with the fact that they do not have to consult with others before making an investment, often means a faster response on a deal. And, while most investigate companies before they invest, few do so as thoroughly as a sophisticated venture capital firm would. They expect to be consulted by management and to have their advice heeded.Īdventure capitalists do not see as many deals as venture capital firms do. Their active participation is important to them. They usually also require a seat on a company’s board of directors and reports from management on the company’s progress. Like other investors, adventure capitalists expect to receive and study a business plan before they proceed. For each, there is something about making a new business succeed that draws them into adventure investing. Many have retired from daily management activities. They may operate a public company that is long past its start-up stage or run a division of a large company that acquired their business. The exhilaration they experienced when starting their business may be waning. Also, venture investing gives them something they cannot get elsewhere: the chance to relive the excitement they experienced in getting their own businesses started.įor many adventure capitalists, this last reason is the telling motivation. They believe their experiences as entrepreneurs help them to identify attractive deals. They know that a wise investment can be very profitable. Usually, the money they invest is money they made by selling a company they started and made grow.Īdventure capitalists fund new enterprises for a combination of reasons. But unlike professionally managed venture capital funds, they invest their own money instead of money others have placed in their care. Like traditional venture capitalists, they invest to make money. Adventure Capitalists are entrepreneurs who invest money in the companies of other entrepreneurs.
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