Venture Capital

Venture capital is a type of private equity capital typically provided by outside investors for financing new or growing businesses. Venture capital investments are generally high-risk investments but offer the potential for above-average returns and/or a percentage of ownership of the company. A venture capitalist (VC) is a person who makes such investments. The initial, start-up money is referred to as “seed money” and entails the greatest risk. If the project gets off the ground it may require additional financing at additional “rounds” before the company is finally brought to the market and the venture capitalist can enjoy handsome rewards.