How does one go about becoming a Venture Capitalist?

David S. Rose
David S. Rose , Founder and CEO , GUST INC.
27 Mar 2014

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?

Gust Launch can set your startup right so its investment ready.


This article is intended for informational purposes only, and doesn't constitute tax, accounting, or legal advice. Everyone's situation is different! For advice in light of your unique circumstances, consult a tax advisor, accountant, or lawyer.