What is Venture Capital?

Answer:
Venture capital represents funds invested in

a start-up or existing business by one or more outside parties. Venture capital is most commonly associated with new businesses or start-ups, but is also commonly utilized for all types of businesses that need infusions of capital to keep up with rapid expansion.

Venture capital generally comes from professional investors, often referred to as venture capitalists, or from a venture capital fund. A venture capital fund typically consists of funds contributed by a group of third party investors, which are invested in business ventures often considered too risky for traditional funding opportunities..

Venture capital may be invested as cash equity, given in exchange for shares in the organization. Venture capital may also be provided as debt to be repaid per specified terms.


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