What is Venture capital?
'''Venture capital''' is a type of [[private equity]] capital.<ref>{{Cite web|title=What Is Venture Capital? Definition, Pros, Cons, and How It Works|url=https://www.investopedia.com/terms/v/venturecapital.asp|access-date=2025-02-21|website=Investopedia|language=en}}</ref> Typically it is provided by outside investors to new businesses that promise to grow fast, such as [[Startup company|start-ups companies]]. Venture capital investments are usually high risk, but offer the potential for higher returns than other investments. A '''venture capitalist''' (VC) is a person who makes such investments. A '''venture capital fund''' is a [[pooled investment]] vehicle (often a [[limited partnership]]) that primarily invests the [[financial capital]] of third-party investors in enterprises that are too risky for the standard [[capital markets]] or [[bank]] [[loan]]s. Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of rich investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies, or ventures. Venture Capital firms can go public after they have reached a certain stage of growth. Given that Venture Capital firms are financial investors in [[Portfolio management|portfolio companies]], they are expected to add value. == Other websites == <!-- please only add links relevant to this article, and not advertisements or spam! --> *{{Cite journal|last1=Raghupathy|first1=M. B.|last2=Thillairajan|first2=A.|date=2015-05-31|title=Financial Value Creation: A Comparative Study of VC-Backed IPOs and Non-VC-Backed IPOs in India|url=https://jpe.pm-research.com/content/18/3/55|journal=The Journal of Private Equity (Retired)|language=en|volume=18|issue=3|pages=55–71|doi=10.3905/jpe.2015.18.3.055|s2cid=154642807 |issn=1096-5572}} *[http://www.nvca.org National Venture Capital Association] *[http://www.vcaonline.com/resources/glossary/index.asp Venture Capital Glossary] {