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Venture Capital Financing




Venture capital investment is a way in which investors support entrepreneurial talent with finance and business skill to exploit market opportunities to obtain long term capital gain.


It's defined as an equity-related investment in the early stage of the growth-oriented business firm. In return, VC has a minority shareholding in the business and the irrevocable right to acquire it.



Five important things that happen in Venture Capital investment


  1. It works in new companies to raise fund
  2. It is a long-term investment in a growth-oriented firm.
  3. Active involvement of VC firm to managements and skills
  4. High risk-return spectrum
  5. It is early finance to firms until they are established