By Colleen Kay Watson, Career Professionals®

The money behind some start-up businesses is called venture capital. The people who make these investments are venture capitalists. Venture capital is part of the whole investment portfolio, and considered to be among the riskiest investments. Dan Frawley, CEO of Iconoculture said, "These types of investments are going for the brass ring. It is a bit like the wild west, shooting for above average returns."

"Venture capital is a rewarding career," according to Dr. Jay Edden, assistant professor in the entrepreneur program at the University of St. Thomas. Dr. Edden continued, "It is very difficult to get into a venture capital career right out of college. One needs strong business experience to enter this field."

Venture capitalists are the source of major capital infusions in carefully researched companies. Most venture capitalists are self-made wealthily individuals that are willing to risk their personal money on a great business idea. Frequently, these individuals start out as entrepreneurs running start up companies.

Gary Smaby, a local venture capitalist started his career, as an entrepreneur then became a Wall Street analyst. He personally visited hundreds of companies. Smaby says reading financial statements are a critical skill for a venture capitalist. He also adds, "The most critical element that a venture capitalist looks at is the person running the company." He continually asks himself, "Do they have what it takes to make this business a success?"

Venture capitalist does what their title describes: they invest capital in new or newer business ventures. Thousands of business plans are submitted to the venture capitalist. They carefully review them looking for a handful of potentially great companies. The chosen receive sizable capital investments. "Venture Capitalists are hoping for one to two homeruns." Frawley continues, "Venture Capitalists are all about chasing returns. In 5 to 10 years when these companies go public, or are sold, the venture capitalist expect up to 10 times or a 1000 percent return."

How To Become A Venture Capitalist

If one is not born into a family fortune the next best way to become a venture capitalist is to work in a start-up business and make it successful. Smaby is a good example of a Venture Capitalist as he loves to start business and has the analytical skills to match. Smaby was passionate about trying new ideas. "I had a great idea and I wanted to make it work."

Frawley noted that he was aware of MBA’s from excellent colleges getting a start in the larger venture capital firms. "Sadly, most of them are on either coast and very few are in the Twin Cities area," lamented Frawley. "However, there are a few locally and they can be found if you look carefully. Venture capital companies do not advertise their existence. This is truly a hidden career opportunity."

Dr. Ebben concluded, "This is a very rewarding career. One gets to review interesting opportunities and people. One learns how to structure financial deals. And it is extremely financially rewarding." So, if someone has the drive and determination, he or she could one day become a venture capitalist.