3. Venture Capital Investments

Venture capital investments involve funding provided by investors to startups and small businesses with high growth potential. These investors, called venture capitalists, take on higher risks in exchange for a share of ownership in the company. They often provide not just money but also guidance, networking, and expertise to help the business succeed. If the company thrives, the investors can earn significant returns when they sell their shares, but if it fails, they may lose their investment. Venture capital is crucial for innovative companies that need capital to grow quickly and bring new ideas to market.