Venture capitalists are often referred to as vulture capitalists and until you read the book: Confessions of a Venture Capitalist, Inside the High-Risk World of Startup Funding by Ruthann Quindlen; Well, you’ll probably never understand how they got that slanderous title. In the book, Ruthann explains what it was like to work in Silicon Valley at a venture capital firm before the dot-com bubble burst.

If you are considering raising venture capital for your new business, perhaps you should read this book. After all, how would you like to sit down for a cup of coffee with a venture capitalist who has been in the industry for years before presenting his business plan? In the book, they describe how venture capitalists will work with many companies at the same time hoping that one or two will make a big payout. The rest hope to break even or lose money and will eventually divest.

The world of venture capitalists is all about return on investment in a very short period of time and they are not just looking to make a profit, they are looking to make 10 times or more of the money they invested. There are many venture capital firms out there and often they bet on the jockey and not just the horse. A business idea or concept can be very good, but if the entrepreneur is impractical the venture capitalists will have to pass. Please consider all this in 2006.