What is Venture Capital?
Venture capital is a source of financing for the new businesses or start-ups. In venture capital funds, inventorsâ€™ cash is pooled and loaned to the start up businesses having long term growth prospective. It is an important source of capital for those Start ups that do not get hands on to other capital sources like equity markets while it also involves high risk with high returns for the investors. It is a kind of equity financing providing entrepreneurs and small groups the ability to raise funds.