Venture capital (VC) now plays a huge role in the global economy, with around $150bn invested in companies in 2015. Nearly all of today’s big-name tech firms relied on backing from VCs in their early stages. While few of us will ever have the chance to invest directly in a tech start-up, there are many small tech stocks on the London Stock Exchange and Aim. So what can venture capitalists teach private investors about picking the best prospects? Here are some key questions to ask before you buy.
How will the idea make money?