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What Is Internet Venture Capital?

Internet venture capital is a term used to refer to the money that is invested by an individual or an entity to a business startup that focuses its operations online. The Internet has indeed revolutionized the lives of people around the world, and businesses have been jumping on the Internet bandwagon. Many startups are sprouting up left and right, and most of them need external funding from venture capitalists to get their business off the ground. This is where Internet venture capital comes into the picture.

When an Internet startup looks around for Internet venture capital, they usually have something to offer the venture capitalist in return. Usually, this “something in return” is a relatively high return on investment, or ROI. It could also be that the venture capitalist will ask for stock options in the company. This is especially common if the venture capitalist really sees huge potential in expansion in the future.

One very popular means of providing Internet venture capital is by following the Silicon Valley model. The term comes from the birthplace of Internet startups, and refers to the concept wherein an Internet venture capitalist will provide enough funding for the business to get started. The money will be enough to last the company for a specific period, at the end of which it is up to the company to find alternative sources of funding.

There is also what is called an angel investor. An angel investor is usually a person who simply wants to share his wealth with businesses that they believe in. They use their own money to fund startups and arrangements regarding the return on their investment depends largely on the parties involved, usually in good faith.

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