What is Venture Capital?

It is a private or institutional investment made into early-stage / start-up companies (new ventures).

Venture Capital is money invested in businesses that are small; or exist only as an initiative, but have huge potential to grow.

The people who invest this money are called venture capitalists (VCs). The venture capital investment is made when a venture capitalist buys shares of such a company and becomes a financial partner in the business.

Venture Capital typically comes from institutional investors and high net worth individuals and is pooled together by dedicated investment firms.

Software and other intellectual property are generally the most common cases whose value is unproven. That is why; Venture capital funding is most widespread in the fast-growing technology and biotechnology fields.