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Kiplinger
Kiplinger
Business
Mark R. Hake, CFA

Venture Capital: What Is It and What Are the Risks?

Magnifying glass over letters V and C for venture capital.

The world of venture capital (VC) is often seen as glamorous and extremely profitable. Indeed, most folks know about Elon Musk and his many successful ventures. Tesla (TSLA) started out as a private VC investment that Musk bought into and it now boasts a $1.1 trillion market cap.

Musk's non-public companies, SpaceX and The Boring Company, are also funded by venture capitalists and are still growing. These investments have helped him become one of the richest people in the world.

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