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The Smart Techie was renamed Siliconindia India Edition starting Feb 2012 to continue the nearly two decade track record of excellence of our US edition.

A Venture For Those Who Dare

Saturday, January 1, 2000

The surge of entrepreneurism in this decade has spawned the era of venture capitalism like never before. Venture capital is the key to America’s technological lead in the world marketplace. According to The Capital Network, a non-profit economic development group, venture-backed companies have created 80 percent of the new jobs in the United States over the last 20 years. Venture capital–backed investments soared to a record-breaking level of $7.67 billion in the second quarter of 1999, an increase of 104 percent over Q2 of 1998 and 78 percent higher than Q1 of 1999.

The Job

What do venture capitalists do? Venture capitalists invest money in start-up companies to help fund the development of new products or services In return, they receive a stake in each company they help finance. If the start-up company succeeds, the venture capitalists who back it realize a profit. Very simply then, a venture capitalist has four basic job functions:

* Finding the deals—Seeking out good private start-up companies to invest capital in

* Winning the deals—Convincing the entrepreneurs that the VC money will bring the most value-add to the start-up

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