What Is the Proper Term for Betting on Wall Street?

Wall Street, as all of you know, is more than a Street. It is a way of life. One that is all about making money. And there are terms for those who partake in this way of life. Terms like speculator, short-term trader, and even hedge fund manager come to mind. However, there is one term that is more appropriate for people involved in high-risk/high-reward ventures such as betting on Wall Street.

That term is venture capitalist. And while it is not a perfect term, it is the most appropriate one.

What Is a Venture Capitalist?

Put simply, a venture capitalist is an investor in a startup company. They provide capital to entrepreneurs who are in search of funding for their business. Typically, venture capitalists will look for businesses that they see as a potential investment. And, as the name implies, they will generally look for businesses with an excellent chance of being profitable.

Venture capitalists are, therefore, essentially risk-tolerant investors. They often put their money where their mouth is – as it were. And, for that reason, they are sometimes also referred to as “brave” or “ardent” investors.

Why Are Venture Capitalists Important?

In the eyes of an entrepreneur, a venture capitalist is an important investor. The startup entrepreneur looks at it that way because a venture capitalist is, most often, the person who provides the much-needed capital to get the business started. Typically, a venture capitalist will want to see a five to seven year plan for the business. They want to ensure that the business will be able to generate reliable income and, hopefully, become profitable.

After the business has generated a reasonable amount of revenue, then they will want to begin the process of selling it. At this point, they will want to begin to see some return on their investment. And this is why they are, generally, risk-tolerant investors.

Key Takeaways

Venture capitalists are essential for any business, regardless of the stage it is in. An entrepreneur should approach them first when seeking funding for their business. Even when the business is established and generating revenue, venture capitalists are essential for turning a profit and scaling up the business. A venture capitalist will want to see a five to seven year plan for the business in order to determine whether or not it is a viable investment. If you are looking for venture capital, approach as many different venture capitalists as possible. This will increase your chances of landing an investor who is financially supporting your business.

As a businessperson, it is your duty to protect your company’s intellectual property. When another company tries to copy your product, approach your state’s attorney general or the United States Copyright Office and lodge a complaint. Follow the proper procedure to ensure that your company’s name and brand remain intact.