Venture capital definition
Venture capital is money provided by investors to new ventures, projects or businesses. It can be difficult for brand new businesses, known as startups, to get access to capital markets, and therefore venture capital provides a valuable potential source of funds.
Venture capital investors take on a lot of risk, and as a result generally want a say in the running of the business or venture. However, the investor potentially gets exposure to strong returns for the long-term. Investors include wealthy individuals (known as ‘Angel’ investors or venture capitalists), and institutions like investment banks and other financial businesses. Sometimes, they may pool resources into a venture capital fund.