
Venture Capital
Venture capital (VC) is a form of private equity financing provided by investors to startup companies and small businesses that are believed to have long-term growth potential. This funding is typically exchanged for equity, or an ownership stake, in the company.
Venture capitalists offer financial support and often contribute technical expertise and managerial experience to help these emerging companies succeed. Given the uncertainties associated with new ventures, VC investments are generally high-risk, but they also offer the possibility of substantial returns if the companies achieve significant growth or profitability.
This type of financing is crucial for startups that may not have access to traditional funding sources, enabling them to develop innovative products or services and scale their operations. However, in exchange for their investment, venture capitalists usually seek significant control over company decisions and a substantial share of the future profits.