The Pros and Cons of Investing in VC

If you are an individual investor with a net worth of at least a million dollars or assets under management of five million dollars or more, there's nothing stopping you from investing in a VC fund. There are micro VC funds that are available where you can pour in between like $10,000 and sometimes less but it isn't easy. It's the institutional investors or accredited investors that get access to VC to pour their money in. The first issue is when VCs buy into these companies, taking a 25 to 50% stake is huge. Often they will pressure companies to exit rather than pursue long term growth.