How Venture Capital Works![](https://hbr.org/resources/images/article_assets/1998/11/Feb22_19_185213533.jpg)
The popular mythology surrounding the U.S. venture-capital industry derives from a previous era. Venture capitalists who nurtured the computer industry in its infancy were legendary both for their risk-taking and for their hands-on operating experience. But today things are different, and separating the myths from the realities is crucial to understanding this important piece of the U.S. economy.
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