A brief and general explanation of Venture Capital is the financial and funding setup from the early stages of starting a business as well as business in new turnaround situations. Generally it can be a high risk investment but a Venture Capital can provide a higher than an average return. A person who takes care of and makes these investment decisions is known as a Venture Capitalist.
The typical role of a Venture Capitalist would be overseeing the funds used from a Business to start getting the Business on track and going. The Venture Capitalist will also try securing and arrange other finances from other sources and investors. They will also keep an eye over proposed business plans and often reform and revise the initial plans and strategies to what they feel would be the most effective.
Another job of someone who works in Venture Capital is to hire and fire the key managers when they feel the situation is necessary. They also find other supporting business companies and contacts and buy current owners when the chance presents itself in the right situations.
Similar to Venture Capital is Angel Investment. An Angel investor is a single person who provides a type of capital investment for a business starting out usually for a return such as ownership in the business or some kind of equity , on the rise today are angel investors organising themselves into groups to share their venture capital investments.
One big difference between a venture capitalist and an Angel investor is an Angel will search and provide with their own funds unlike venture capitalists. They will also invest judged on their own decisions as an individual.
Like Venture Capital, Angel investment can be very high risk but can provide rewarding returns if done correctly. In 2009 the U.K alone had around 4000-6000 Angel investors who averaged a £42000 investment amount in the business they choose to invest in with many seeing profitable returns.