1. Venture Capital Financing

Venture capital financing is a type of funding provided to early-stage companies and startups with high growth potential. Investors, known as venture capitalists, supply capital in exchange for equity—essentially ownership stakes—in the business. This funding helps startups develop their products, expand operations, or enter new markets. Venture capitalists not only provide money but often offer guidance and industry connections to help the business succeed. While venture capital can lead to significant returns if the company grows, it also carries risks, as many startups may fail.