[1] Due to their aggressive investing nature, and the methods they use to make firms more profitable, vulture capitalists are often criticized.
[2] A venture capitalist is an investor who provides funding for start-ups, early stage firms and companies with growth potential.
[1] These types of firms seek out venture capitalists, as they are too small or too new to have credit profiles, making them ineligible for bank loans and other forms of raising capital.
[7][1] Vulture capitalists are subject to heightened scrutiny as they target firms that are generally financially vulnerable[4] due to failures in securing capital.
These firms[3] are then acquired by vulture capitalists for prices that are often considerably lower than perceived fair market valuation.