Venture Capital

Definition of Venture Capital Hierarchical Category as it relates to Finance

Venture Capital is a subfield of finance that focuses on providing capital to early-stage, high-potential, growth companies in exchange for equity or an ownership stake. It is often associated with investment in innovative technology companies, start-ups, and small businesses that have the potential to grow rapidly. The investors, also known as venture capitalists, bear the risk of financing these companies with the hope of earning substantial returns when the companies become successful. It is an essential source of funding for businesses that may not have access to traditional sources of capital like bank loans.

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