Venture Capital

Venture Capital refers to a type of private equity financing that is provided by venture capital firms or individual investors to start-up companies and small businesses that are believed to have long-term growth potential. This form of funding is typically used to support early-stage companies that are not yet profitable and may not qualify for traditional bank financing. In exchange for their investment, venture capitalists usually acquire equity in the company, meaning they become part-owners. These investors often provide not only capital but also strategic assistance, mentorship, and networking opportunities to help the business grow. Venture capital is crucial for fostering innovation and entrepreneurship, as it enables entrepreneurs to develop their ideas, scale operations, and potentially lead to successful market launches.