Invest in Real Estate and Diversify Your Portfolio

CityVest invests in highly selective real estate private equity investment funds.

Get Started View Investments

Question IDs
Object Type Map

Visibility Map
Active Map
Validator Map
Children Map

Parent Map

Question Options Map

Question Options

Question Option Activate Map

First Name
Last Name
Main Phone

Venture Capitalist

What is a Venture Capitalist?

A venture capitalist is a person or group who provides investment capital to a start-up venture. A venture capitalist’s participation in an investment deal is a form of equity financing. Their goal is to invest in businesses that are promising in terms of producing high rates of return. The transaction in a venture capitalist investment is as follows:

  • The venture capitalist supplies capital in exchange for taking equity or ownership in the company.

Equity financing such as this is popular among non-established businesses. Non-established businesses may choose to have a venture capitalist invest in their business because they are unable to secure business loans from financial institutions. Venture capitalists look for a strong management team because they understand new businesses may lack cash flow or collateral which deems them high-risk. They also look for a large potential market and a unique product or service. Venture capitalists are usually quite familiar with industries they choose to invest in, this gives them strong influence should the company begin to yield high returns.

A venture capitalist will want to obtain a large portion of control of the company in exchange for providing funds to a start-up business. By bringing in experience and capital, it is common for venture capitalists to obtain majority voting rights, in addition to special veto rights in a transaction such as this. A venture capitalist is usually in it for the long haul, looking to part with the company once it is ready for an initial public offering.

Example of a Venture Capitalist

Fund seeking companies that show promise for high returns are absolutely on a venture capitalist’s radar. A venture capitalist will likely maintain his portion of ownership in the company if the company yields consistent high returns year after year.

For example, let’s say a venture capitalist meets with the directors of a start-up company. The startup company’s current operations and long-term business plans show exceptional promise considering the industry’s competition, so the venture capitalist invests $2 million in the startup. The terms of the investment states that the investor receives 30% annual return on the $3 million invested and has 45% ownership in the company. This means that each year, the company must issue $600,000 to the investor. Five years in, the company has paid out $3,000,000 to the investor. Now, the goal for the investor and the company is to be in a place where cash flow is positive where the company can survive on its own. Should the company want to take back control from the investor, they would have to buy him out to avoid paying $600,000 a year. Keep in mind however, at this point, the company has grown in value, so the investor will likely adjust the price of his portion of the company upon selling, which means it will probably cost more than $2 million in this example to buy the venture capitalist out.

In Summary

Venture capitalist investments are equity financing deals where startups give up a portion of control of the company for capital needed to expand or grow the business. A venture capitalist’s goal is to invest in a company that has promise to yield high returns and dominate its industry. Entrepreneurs may not accept an offer from a venture capitalist because striking a deal with a venture capitalist means giving up some or a big chunk of control. All in all, if you are a start-up company seeking capital to grow or expand your business, it is absolutely crucial to consider the percentage of control your willing to give up in addition to the rate of return your willing to pay out to the investor on a regular basis.

Invest With Confidence

We Do the Work to Provide You the Best investment Opportunities

  • A completely new alternative to investing in stocks and bonds.

    Every CityVest investment undergoes a thorough due diligence process by our experienced underwriting team. Of the hundreds of projects reviewed each month, fewer than 1% are approved.

    CityVest can help you:


      You benefit through professional investment structures, which target passive returns for our investors in a range from 10% to 25% - often with a preferred return.


      CityVest pre-screens investments for you through our underwriting and due diligence process. We partner with institutional investment funds and sponsors and we seek a preferred rate of return.


      Since real estate investments typically generate cash flow income, while common stock does not, real estate valuations tend to be less volatile and less sensitive to market risk factors.


      CityVest will handle all of the accounting and administration of your investment, while you can monitor the returns.

We simplify online real estate investing.

Get Started

Copyrights © 2022 All Rights Reserved by CityVest Capital Inc
Privacy / Terms of Service

Please read the important disclosures below. is a website owned by CityVest Marketplace LLC, a subsidiary of CityVest Capital Inc. (together with its affiliates, “CityVest”). By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service.

The information on this website does not constitute an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any investment or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents of any entity described on this website, which will contain information about each entity’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein and which qualifies in its entirety the information set forth herein. The information contained herein does not constitute part of the offering documents of any entity. An investment in any investment included on this website, entails a high degree of risk (including the possible loss of a substantial part, or even the entire amount, of an investment) and no assurance can be given that any entity’s investment objectives will be achieved or that investors will receive a return of their capital. Past returns are not indicative of future performance.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources we believes are reliable, but we make no representations or warranties as to the completeness, adequacy or accuracy of any information provided. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.

Prospective investors should read the confidential offering materials of any privately offered investment product, including all risk and conflict disclosures included therein, before investing. Please read detailed information about such calculations in the investment manager’s detailed financial and information material. The information contained herein should be treated in a confidential manner and may not be reproduced or used in whole or in part for any other purpose.

CityVest does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Private placements on are intended for accredited investors (for persons residing in the U.S.), and for persons residing abroad in jurisdictions where securities registration exemptions apply. Private placements of securities are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by CityVest, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

© 2022 CityVest Marketplace LLC. All rights reserved.