Question

What is venture capital in enterpreurship development?

Answer 1

Startup or growth equity capital or loan capital provided by private investors (the venture capitalists) or specialized financial institutions (development finance houses or venture capital firms). Also called risk capital. Venture capital is a type of funding for a new or growing business.

Answer 2

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Venture capital, or VC in short, is a type of private equity a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential.

Venture capital firms or funds invest in this era or early-stage companies in exchange for equity or an ownership stake as well in the companies they invest in.

Moreover, venture capitalists may take on the risk of financing risky start-ups in the hopes that some of the firms they support will someday become successful.