Venture capitalists are often called vulture capitalists and until you read the book: Confessions of a Venture Capitalist, Inside the High Risk World of Startup Financing 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 startup, maybe you should read this book. After all, 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 your business plan? In the book they describe how venture capitalists will work with many companies at the same time hoping that one or two can get a big payout. The rest hope to break even or lose money and eventually fall apart.

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