
Venture Capital
Venture capital is a form of financing where investors provide funds to startups and small businesses with high growth potential in exchange for equity, or ownership stakes. These investors, often part of specialized firms, seek to support innovative ideas while aiming for significant returns on their investment when the businesses grow or get sold. Unlike traditional loans, venture capital is more about taking risks on new ideas rather than guaranteed repayments. This funding helps companies develop their products and expand, playing a crucial role in the entrepreneurial ecosystem.