Definition:
Venture capital is private funding used to support risky new businesses and speculative ventures, usually businesses with high growth potential. A typical venture capital investment usually involves the business owner giving up equity (in the form of a share in the business) to the venture capitalist in return for funding. A strong business plan and the possibility of better-than-average returns are usually key components in the decision of a venture capital firm to fund a business start-up.
Also Known As: VC, private equity funding
