Venture capital is the capital available to a new business. This is usually provided in exchange for shares in the business.
Venture capital investors or “venture capitalists” are individuals or organizations (including many funds) that specialize in private equity. Because many startups fail, venture capital is considered to be a high-risk investment form.
By the same measure, potential profits are also high. These are reaped in the event that a new business grows successfully and venture capital firms sell their shares at many times the price.