From some website
'A venture capitalist specializes in investing in start ups or
companies still in the early stages of development. The objective
of venture capital investing is to bring a company from incubation
into a dominant competitor within its respective industry. This
means generating a high return on its investment. In addition to
proving financing, the venture capitalist also provides expertise
in various professional fields to help the company meets its
business objectives.
When a venture capitalist researches a potential investment, they
look for companies with the best chance of succeeding. This is
usually a company with a special competitive advantage, a highly
regarded executive team and high revenue and profit growth. Venture
capital investing is a high risk high return investment
game.'
