She Has Leverage

Plain answers about venture capital. Start with the question you have.

Nine articles, from how venture funds work to deciding whether one belongs in your financial life.

  1. Why do people invest in venture capital funds?

    People invest in venture capital funds for a chance at growth, to back an area they care about, and to learn from fund managers and other investors.

  2. How do I know if I’m ready to invest in a venture fund?

    You’re ready to consider a venture fund when you meet its rules, can pay the full amount you promise over years, and can accept little or nothing back.

  3. How do I get started investing in a venture fund?

    Learn what you’d agree to as an LP, confirm which funds you can invest in, check each manager and the fund’s terms, and write down your decision.

  4. What is a limited partner (LP) in venture capital?

    An LP, or limited partner, invests money in a venture fund. The general partner picks the startups, and you own a share of the fund, not each startup.

  5. Should I invest in a venture fund or directly in startups?

    A venture fund can suit you if you’d rather judge a manager who picks the startups. Investing directly can suit you if you want to choose each company.

  6. How do I know if I’m an accredited investor?

    In the U.S., you’re an accredited investor if you meet one of the SEC’s tests: an income test, a net worth test, or a Series 7, 65, or 82 license.

  7. How much money do I need to invest in a venture capital fund?

    Each venture fund sets its own minimum. You need enough to meet it and to pay the full amount you promise over time, without shortchanging other goals.

  8. Where do I find venture funds accepting individual investors?

    Find venture funds that accept individual investors through fund websites, LP communities, professional and alumni networks, conferences, and webinars.

  9. How do I build wealth through ownership?

    Build wealth by owning assets rather than only earning income: equity in your work, public market holdings, real assets, and private market stakes.