Venture capitalists make investments with venture capital. These investments are usually focused into high-growth and high-potential areas. Usually not their personal funds, venture capital is oftentimes the money of a pool of investors which make up the venture capital fund. Sometimes, venture capitalists do put their own money at stake, but not necessarily.
A venture capitalist often will come from top corporate positions, entrepreneurial success, management consulting, investment banking, or government positions. They are typically very aware and astute of what it takes to bring a business idea to success, and part of that equation is capital. The majority of VCs reside in California and Boston. VCs often bring real world and industry experience that is infinitely valuable to startups. Their connections are often used to get startups and entrepreneurs into meetings they could not get otherwise. Finally, the collective experiences of portfolio companies are leveraged and any knowledge gained at one portfolio company can be used at another. Sand Hill Road in California is the most densely populated area for VCs.