Venture Capital

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Definition: Venture Capital

Venture capital are the funds given by investors for startups and entrepreneurs for the growing needs of their new company. The concept of venture capital fund is that a new company requires money for various activities like manpower, infrastructure, branding, operations etc which are given by investors. In return, the investors seek profits, share in the company and revenue shareholders when the company grows in the future.


Features of Venture Capital

  • Equity Participation.
  • Long-term Investments.
  • Participation in Management.

Venture capitalist combines the qualities of bankers, stock market investors and entrepreneur in one.


Examples

Angel broking is one of such venture capital firms which lends to small companies which cannot raise money through public markets or bank borrowing. These firms have a stake in the ownership as well decision making in lieu of lending.


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