2. Venture Capital Financing

Venture capital financing is when investors provide money to startups or small businesses with high growth potential. In exchange for their investment, these investors typically receive equity, or partial ownership, in the company. This funding helps businesses develop their products, expand operations, or enter new markets. Venture capitalists are often looking for significant returns on their investments and may offer guidance or resources to help the company succeed. It's a crucial way for innovative ideas to secure the financial support needed to grow.