Venture Capital refers to a form of private equity and financing that small companies and small businesses are provided with by investors. These are believed to have long-term growth potential.
Venture Capital actually comes from high-end investors, investment banks, and any other financial institutions. It must be noted though that this does not always come through monetary means.
Venture Capital could also be provided to small companies that bear a distinguishable growth potential or business entities that have grown at a rapid pace and are geared to greater expansion. While it can be risky for investors who place funds, the possibility of high returns is an enticing payoff. The obvious downside for the companies is that investors get equity, thus a voice in business solutions.