You should be chary of investing any money in such a risky venture.
They usually have Business experience and are often prepared to invest in a risky venture.
EarthSound started on a shoestring because the founders couldn't find any investors for such a risky venture.
But pointing out how risky venture capital is only raises the question of why the government went into it in the first place.
Why do small investors struggle to find a few dollars here and there in order to invest in some possibly risky venture?
After each blowup, the firms that survive temporarily shy away from risky ventures and cut back on leverage.
