If You Know Nothing About Venture Capital, Watch This First | Forbes

Venture capital is a key component in the growth of technology companies, but do you know the basics of how it works? If not, we've put together a little explainer with Lego to get you up to speed.
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[@Thek0easy]

You didn't mention how borrowing from a bank is different from an investor. Since an investor usually gets equity-- you get their support and network which are valuable resources.

[@elmagusvitriana5906]

Cc e vcvm c Ve CV vv c ec c c l vv vc c c v v cinta v l eg v c c e v cccc ccd CCD ve l bln April dl sbna ecchi ec c d rc dek ee vee e e ec le lagu in ckckcmb vc mereka cuku

[@teodulacapote2852]

@@elmagusvitriana5906 vvvvcccvcvvvvccvcvccvcvccvcvcvvvcvccccvcvcvvvccccvvcvcvccvcvvcvcvvcvv v

[@teodulacapote2852]

@@elmagusvitriana5906 cvvvvvcvcc

[@joesteinberger6886]

@@teodulacapote2852 gas NBC af

[@God-T]

when we need him the most, he came, the silent investor ! 👀

[@muskanverma7833]

Honestly, they made it so easy to understand ❤️ wish that goes the same for the path too..

[@z3bb374]

How is it now

[@jonesnj07]

*Now do one on IPO's and how a company is publicly traded, because I don't get who controls it then after it goes from private to public*

[@nouphal8948]

+Nathan Jones Yes this one Please!

[@troythegreat777]

Shareowners control the company. Those who have the most shares elect the Board of Directors then the Board of Directors appoint a President. The President reports to the Board.

[@ronanryan5331]

+Nathan Jones It can go "public" but what they normally do is not sell more than 49%. Therefore because they have 51% of the company and are a majority, they still get to do what they please. But sometimes founding members who are CEOs get rolled. Steve Jobs was fired as CEO of apple because he only owned 15% of the company.

[@nathanokumu1280]

I finallу found wоrking tool. Wоrk рerfeсtlу without аny prоblеms twitter.com/9afb4ae19e4f065b8/status/779269023557038080 If Yоu Кnow Nothing Abоut Venturе Cаpital Waаtch Тhis First

[@billdolphin4605]

watch this (it isnt my video btw) kzbin.info/www/bejne/bGiai6eJgtdnY5Y

[@ghislainm8809]

Best short video explanation on why entering the VC game.

[@jesusthegymthemwithjoiedwa2398]

Wow.. thank you for the concise, entertaining and simple explanation.

[@sirgizmo440]

Easy to understand. Thanks.

[@GnarMarv2]

"Marcus" highly resembles that of Russ Hanneman and his McLaren from "Silicon Valley."

[@ImNotADeeJay]

totally

[@zboobafett5984]

first things that came in my mind

[@leonvla]

so true!

[@timetraveler9518]

Thank you, helped for class.

[@vivianvalois5352]

Amazing explanation … very easy way to understand 😍

[@subrojitadhikary8372]

Thaaaankk You Sooo mch for the video. It helped a lot

[@elizabethm557]

thanks for such a simplified, easy to digest content

[@praveenjohn9098]

thank you forbes

[@cynic.clinically]

Thanks

[@thehiergaming]

Love the easy to understand explanation and visuals 👏

[@codeknight7]

Thank you.

[@RsnHfu]

so shark tank is a way for big investors to seek out ideas in terms of finding great promise. would that be a form of venture capital?

[@BigBoyO56]

Trey Roberts yes

[@KennyakaTI]

Yes the sharks are venture capitalists

[@cecilthelion7326]

@@KennyakaTI if it's with your own money it's called angel investing rather than venture capital.

[@chironpallas]

thank you

[@johanandersson9602]

great!

[@lalitbhati6030]

Well done 👍👍

[@10thHellJumper]

Ah yes, legos, the best way for me to understand business.

[@aravindnarayanan5664]

Great explanation! Informative and succinct.

[@natashachiware4882]

I want money like these people!!!

[@ronanthedestroyer729]

Very good explanation, and above it, now I want to play with Legos.

[@786mukminoon9]

Thank you ~ Daeng Effandie

[@user-rb2rz1iv7e]

Amazing

[@hopfenbier7910]

Habt ihr schon mal was von Planwirtschaft gehört?

[@MrNobody989]

Isn’t this the same as private equity or private enterprise

[@rewanabbas6562]

great video but what does the term "tech" actually refer to? is it just a technology based business (online sales)?

[@lianjiayang196]

it is like a gamble

[@wealthchannel4318]

Nice video liked it

[@ashleyathill8134]

That's so EZ

[@mohamethseck]

What’s the music in the background

[@LutkeVeldNL]

What's the usual return (percentage) for the VC?

[@GnarMarv2]

+LutkeVeldNL Pshhhh, solely depends on the Entrepreneurs(s) some are UNBELIEVABLY retarded and will sell their souls and will negotiate for say 30%. And smart Entrepreneurs will exit with 60%+ Equity.

[@Thek0easy]

+LutkeVeldNL There's no usual. It's case by case.

[@lifein2k368]

Lol on the Judah Lego man-bun, 😂 Gr8 explanation 👌

[@aralee6155]

I thought he looked familiar 🤔

[@UXtatic]

What happens if they stay private?

[@georgephilip1966]

Can I go into VC without a background in tech?

[@KKPADI6]

Nice! Thanks! 👍👍👍😊😊😊🌈🌈🌈

[@DirtyyDom]

This confuses me. The VC makes his return on investment right before the company IPO's or after?

[@bigd0102294]

DirtyyDom Hopefully you've found your answer in the last two years but yes the VC makes his return before the IPO because he helps the company reach that stage.

[@pa659]

Both, they make a return if their investments gets bought by another company or after the investment get listed on the stock market and is trading.

[@Wolfsbane909]

​​@@pa659that is correct since equity and value has yet to be determined and risk assessment portfolio yet to be equated. That's basically venture capitalism in a nut shell

[@mikey3d912]

I need an Angle investor

[@CuriousMumukshu]

Do they own some amount of company?

[@MOON-zo3ik]

Shark tank brought me here

[@mr.bannana4369]

So, kind of like a more selective shark tank, but much more rewarding.

[@LoveWithAdrish]

You showed VC is one investor. But it's a group of investors that invest into VC

[@dakshraj3864]

Watching this after 7 years when I officially broke into the VC myself

[@TheClever69k]

Something to do with chuck e cheese. Brought me here.

[@dr.saftig3466]

Ich mag Planwirtschaft

[@marieblacksmith9320]

So, venture capital is only used in the tech world?

[@bigd347]

GME to the Moon!

[@CarringtonKelleys]

The irony the timing of this video is also my birthday. 2/22

[@Vedrajrm]

So they sell a % of the company?

[@U77am]

Yea they exchange an equity for the money

[@saarthakpanda9143]

Hope anyone's from 2019

[@rafaelmendoza7357]

so what do angel investors do?

[@safwatchoudhury9959]

+Raf Mendoza Invest in a business for some equity.

[@mashedpotatoes6225]

+Raf Mendoza I think that they are just like VC:s but VC:s are more often companies whereas angels are private persons. They do the same thing: invest for equity with the difference that angels are more prone to invest in early companies (seed). Also VC:s have more money than Angels.

[@gearzone2611]

Angel investors is an individual person investing on their own money to fund the startup or a company. Often times angel investors do have a professional people around them.

[@TheWileycyote95]

Mashed Potatoes With that being said, I think that VCs usually invest AT LEAST $1M into a company. Therefor that company would NEED to be profitable before VCs would invest

[@KofoshiiKaro]

​@@IndieGamerChickare you still an angel investor or a tech C.E.O?

[@BGwControlStop]

so its basically high stakes insider gambling, makes you wonder how many people with great ideas exist out there without the required capital networks and connections to make them reality

[@mashedpotatoes6225]

So Venture capitalists get their money from their investors/founders right and the investors then get the dividends?

[@sharvishah25]

Do venture capitalists only provide money ? Or are they involved heavily with the startups?

[@preciouslovesofficial]

Yes they provided the mentorship, network, high scale manufacturing, and greater marketing potential. That’s how new products usually end up in retail stores and large-chains in the US or globally. In return a VC may get ownership share and/or residuals on the product. All that is based on how you negotiate the deal.

[@z.m.4309]

Is dragon's den venture capital?

[@stomiball889]

I love capitalism

[@JohnSmith-jy4qj]

So do I, but then again I should do being filthy rich

[@pnr2736]

Yooo

[@felixvanaudenaerde9339]

worth mentining that it doens'nt have to be tech

[@ArgumentumAdHominem]

3/4 startups fail - source pls?

[@tmuduya]

2023😎

[@lakhan911]

now teach me math

[@hes8518]

thank you sexy legos!

[@crimsonglory7823]

So basically shark tank.

[@khaled1159]

IIIIIIII

[@leechurchill1965]

"Ballin'?" Did you really? And just cut the music. It's so pointless and annoying.

[@nnss509]

No like because of music, stop this nonsense in your next video, so annoying

[@brandontravis7048]

Thanks

[@IsabelGarcia-dq7qw]

Thanks