Startup businesses may take many paths: they can fail, become successful and sell out (for instance, YouTube was sold to Google in 2006), or they can grow into larger companies (such as Facebook).
By startup business, it is meant a company that is just starting and has few resources available. The business's startup costs are typically minimal, and investors can expect to see returns on their investment within a short time – usually less than 24 months.
Invest directly into the startup company. Venture capital investing allows an investor to put money into a startup business by helping them get started or enabling them to buy equipment and pay for office expenses such as rent. Most venture capitalists do not let individual investors participate in their deals unless they have significant assets under management. However, there are exceptions, so if you have a lot of money and would like to invest in startup companies, this is undoubtedly one way you can do so.
