The era of startups and technology has given rise to a new lucrative industry, namely Venture Capitalism. You might have heard in the news about how some startups raised $X Millions in seed funding. These Venture Capital firms are those behind these investments. Venture capital firms, simply put, invest money into startups and small companies that they believe will become profitable and disrupt an industry. These firms hope to invest in a company early and cash out in a massive way when a large company buys the startup or the startup becomes publicly traded.
Venture Capital is another form of financial services but is considered very risky as is every startup that has become successful, however, there are many more that have failed. A lot of the companies that Venture Capitalists invest in fail despite their investments, leaving them with an infinitely negative return on the investment. However, because they are so risky, the returns on a good investment are massive. Therefore, a venture capitalist spends most of their time researching and looking at the finances of a company that they are interested in investing in. This includes conducting market research in economic and consumer trends.