Comment on the following: Venture capitalist prefers to invest in 'entrepreneurial business'.

Venture capital is a source of financing for new business. Venture capital funds pool investors' cash and loan to finance or provide seed capital to startup firms and small businesses with perceived, long-term growth potential. This is a very important source of funding for startups that do not have access to other forms of capital and it typically entails high risk (and potentially high returns) for the investor. Venture capitalist prefers to invest in "entrepreneurial businesses". However, this does not necessarily mean small or new businesses, rather, it is more about the investment's aspirations and potential for growth, rather than by current size. Such businesses are aiming to grow rapidly to a significant size. As a rule of thumb, unless a business can offer the prospect of significant turnover growth within five years, it is unlikely to be of interest to a venture capital firm. Venture capital investors are only interested in companies with high growth prospects, which are managed by experienced and ambitious teams who are capable of turning their business plan into a reality.