Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.

In essence, the venture capitalist buys a stake in an entrepreneur’s idea, nurtures it for a short period of time, and then exits with the help of an investment banker. Venture capital’s niche exists because of the structure and rules of capital markets.

How Would a Person Start a Venture Capital Fund?

1. In order to start a VC Firm you need a track record.
2. Start as an angel investor, make some good investments, and then, after proving yourself as an angel, raise a small fund.
3. Go join an established fund, and build a track record.
4. Often, a “financial” VC will seek out an operational partner.

In general, you’ll earn significantly more across all three in private equity – though it also depends on the fund size. For example, in the U.S., first-year Associates in private equity might earn between $200K and $300K total. But VC firms might pay 30-50% less at that level (based on various compensation surveys).

If you want to get out of investment banking, there are a few well-trodden exit options: private equity (PE), corporate development, consulting, hedge funds, or venture capital (VC). Arguably, venture capital is the most exciting of the four options.

It is too simple to say that private equity compensation is higher than investment banking. On base salary, you would generally be earning more as an Associate in PE when you join from a mid-senior analyst level but as you become mid-senior associate in IBD you tend to earn a higher base salary.

In theory, VCs are like the entrepreneurs they back: They grow rich only if enough of the companies in which they invest flourish. A successful VC for a top-tier firm can expect to earn somewhere between $10 million and $20 million a year. The very best make even more.

• Step One: Put-and-Take Account. This is the first savings you should establish when you begin making money.
• Step Two: Beginning to Invest.
• Step Three: Systematic Investing.
• Step Four: Strategic Investing.
• Step Five: Speculative Investing.

How to Become Billionaire from Zero

1. How to Become Billionaire from Zero. Invent. Innovate. Don’t think you know everything. Invest. Don’t make flashy investments. Be an entrepreneur. Don’t give up early. Prepare a plan. Make becoming a billionaire a priority. Think outside the box.
2. People Who Become Billionaire from Zero.

If you want to start a low-cost business, these 25 ideas will help inspire your entrepreneurial passion.

• Content creation.
• Personal or virtual assistant.
• Event planning services.
• Errand/concierge service.
• Professional reviewer.
• Social media consultant.
• Etsy shop.
• Online courses and tutoring.