Adventure Capitalist

What Is an Adventure Capitalist?

The term "adventure capitalist" is casually used to portray venture capital (VC) investors who have particularly high risk tolerances. They frequently become actively engaged with the companies they invest in.

Adventure capitalists generally support companies in emerging industries. Albeit such companies are probably not going to succeed, the couple of them which in all actuality do succeed can at times accomplish extraordinary returns for their initial investors.

Grasping Adventure Capitalists

While the field of VC investing is known for its high risk tolerance, adventure capitalists are apparently even more OK with risk. The antithesis to this risk tolerance, nonetheless, is that the potential returns delighted in by adventure capitalists can be particularly high. Significantly, adventure capitalists will look to boost their odds of coming out on top by personally adding to the management of the companies they invest in.

Via model, the social media market we are so acquainted with today is currently worth many billions of dollars. Yet in the mid 2000s, this industry was essentially non-existent. In those early years, adventure capitalists who had chosen to back companies like Meta (formerly Facebook) would have appeared to be taking a practically crazy level of risk. All things considered, it is sufficiently troublesome to move fruitful startup companies in laid out industries, let alone ones in industries that have barely been conceived.

Yet a regular adventure capitalist might have taken a gander at that situation in an unexpected way. Where others would have seen the lack of an existing industry in which to grow, an adventure capitalist could have seen the potential for individual companies to be the trailblazers of that industry, solidifying their position as the market leader. As a matter of fact, adventure capitalists may be particularly drawn to situations where the industry environment itself is quickly developing, due to the potential for startups in those industries to benefit from a first-mover's advantage.

Jim Rogers

Adventure Capitalist (2004) is likewise the title of a book in which writer and former Wall Street lender Jim Rogers depicts his three-year, 116-dirt road trip. Rogers retired at age 37 and has likewise visited the world by bike, setting Guinness Book records for the two trips.

Illustration of an Adventure Capitalist

Emma is a VC investor who is known as an "adventure capitalist" by her friends. She is known for seeking out beginning phase companies that are endeavoring to profoundly disrupt industries or, in all likelihood become pioneers in new industry sectors.

As part of her investment cycle, Emma keeps side by side of new mechanical advancements that are inside her circle of skill. She depends on a network of scholastic and professional contacts that can assist her keep with pacing of new innovations. Through her network, she can likewise support the companies she invests in by associating them with important specialists.

Regularly, Emma looks to be in the primary round of investors in a company, giving funds even before the company starts its formal raising money rounds from the VC community. Dissimilar to some VCs who take a more passive and diversified approach, Emma tries to become engaged with the company at the board level, to work on their odds of coming out on top.

Regardless of her purposeful approach, Emma perceives that the possibilities of any individual investment succeeding are very small. By and by, she invests with the philosophy that assuming that even a small part of her investments succeed, the scale of their prosperity is probably going to be so large as to compensate for the combined losses of the multitude of different investments.

Highlights

• Adventure capitalists frequently become personally associated with the companies they invest in, to expand their odds of coming out on top.
• They generally center around companies chasing after disruptive advances or who try to become pioneers in emerging industries.
• Adventure capitalists are VC investors known for their high risk tolerances.