venture financing

Venture financing involves providing funding to early-stage companies that have high growth potential but also carry significant risk. Investors, such as venture capital firms, offer capital in exchange for equity or ownership stakes, helping the company develop its products, expand its operations, or enter new markets. This type of funding is essential for startups that may not yet have enough revenue or assets for traditional loans. In return, investors hope to profit if the company succeeds and increases in value, often through future sales, acquisitions, or an initial public offering (IPO).