What is an adventure capitalist?
The term “adventure capitalist” is flexible in the definition. Generally, it refers to an individual who makes significant investments in start-up companies. They also work closely with the companies they invest in and usually earn a seat on the board of directors
If you’re here to read more tips and tricks on the popular iPhone game, “Adventure Capitalist,” we’re sorry to disappoint. But, since you’re here, allow us to tell you what exactly an adventure capitalist does. The word “adventure” itself makes the job sound fun, right? Well, if you can describe yourself as someone who is a thrill seeker and a risk taker, it probably would be!
To understand exactly what an adventure capitalist does, we need to talk about their ancestors, the venture capitalists. Traditionally, these investors are part of prominent venture capital firms that can provide capital to small businesses to expand. In some cases, they also supply seed money for people with business ideas that they feel would grow large enough to give back significant returns on their original investment. It is a game of risk, and the stakes are incredibly high which is why venture capital firms would always play it smart and sometimes, a little safe.
Ultimately, an adventure capitalist is just a variant of a venture capitalist. While many venture capitalists operate in groups and have wallets that could fill the Grand Canyon, adventure capitalists may be wealthy individuals whose pockets aren’t as deep but are in search of great opportunities for investing. Being part of a big firm composed of many people means that decisions cannot be made by one person alone. This idea limits the wandering mind of an adventure capitalist who may want to invest when the firm says not to.
How do adventure capitalists work?
This is not to say that adventure capitalists are rebellious people who purposely invest in risky ventures. No, they know and understand the nature of the deals in which they want to invest. They also tend to deviate from a venture capital firm when they are experts in a specific field. All right, maybe not really an expert, but someone who specializes or is at least knowledgeable in a particular sector.
Take, for example, Ashton Kutcher, celebrity turned successful venture capitalist and co-founder of top venture capital firm, A-Grade Investments. Kutcher enjoys substantial returns from A-Grade’s investments in companies such as Airbnb and Uber. Before that, Kutcher has already been making high returns as an adventure capitalist. The actor used his knowledge of technology to make smart decisions investing early in startups like Foursquare and Skype.
Many adventure capitalists actively look for investment opportunities that may offer returns at a higher rate. The idea is that the more significant the risk is, the bigger the potential benefits will be as well. This is also based on the understanding that startups that are venturing into unfamiliar territories are more likely to grow faster compared to other companies.