If you understand how venture capital firms work, it’ll be pretty easy to know what a venture capital group invests in.

Every company starts with an idea, but when it comes to writing checks, venture capital groups tend to look for ideas that have already turned into operating companies.

Venture capital groups are not just broad market investors that put their money wherever there is a potential cash upside. They specifically look for high risk, high growth industries and opportunities where there is a lot of M&A and IPO activity. They need their investments to become liquid in a short period of time, so companies that are just profitable aren’t good enough. They need to be purchased or taken public for them to matter to a v...