For as long as I can remember venture capital has been promoted as the Holy Grail of economic growth by a good number of business people and almost all politicians. It has been mentioned in practically every budget speech in the last several years because of the warm feeling it brings to those who believe that they can indeed become rich by shifting their business risk onto others. Venture capital is financing that investors provide to start-up companies and small businesses that are believed to have long-term potential. While there are different forms of venture capital financing, the venture capital industry was at its best in the nineties. It is now hardly ever promoted as the solution to every shortage of risk capital that people with exciting new business ideas often encounter.
