Venture capital

Money and value added services provided by individual investors and financial institutions to start-up enterprises and small companies considered to have strong growth potential. This is a common source of funding for new or unproven businesses which do not have access to the capital markets as they look to expand. Venture capitalists expect high levels of return on their investments and often have a say in how the company is wrong. Venture capital is a very high risk investment as many small businesses collapse.

This definition is for general information purposes only