What do venture capitalists take in return for backing a new business?

1. Venture capital is equity, so venture capitalists invest in return for part of the ownership, sometimes as much as 60 percent. 2. They look for new businesses with high growth potential and expect a high investment return within 5 to 10 years. 3. By getting in on the ground floor they buy stock very cheaply, then profit by selling it at a much higher price when the company goes public. 4. They generally get a voice in management through seats on the board of directors, not through any exchange committee. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.5 Equity Financing_