Venture Capital Pools
Venture capital pools are a twist on private equity arrangements, in which investors pool their money to offer start-up capital to growing companies. By requiring an initial investment that is significantly lower than in a private equity arrangement, venture capital pools give smaller investors the opportunity to invest in new or rapidly growing companies. Venture capital pools may be small groups of private investors, or they may be operated as managed funds called venture capital funds or private equity funds.
As with private equity arrangements, these investments usually pay off only in the long term, but they minimize the risks of loss somewhat by investing in multiple companies instead of just one.