What is venture capital?

Q: What is venture capital?


A: Venture capital is a type of private equity capital provided by outside investors to new businesses that promise to grow fast.

Q: What are the potential returns of venture capital investments?


A: Venture capital investments are usually high risk, but offer the potential for above-average returns.

Q: Who is a venture capitalist?


A: A venture capitalist (VC) is a person who makes investments in new businesses that promise to grow quickly.

Q: What is a venture capital fund?


A: A venture capital fund is a pooled investment vehicle that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans.

Q: What resources may venture capital include besides financial capital?


A: Venture capital can also include managerial and technical expertise.

Q: Where does most venture capital come from?


A: Most venture capital comes from a group of rich investors, investment banks and other financial institutions that pool such investments or partnerships.

Q: Which type of companies is raising capital through venture capital popular among?


A: Raising capital through venture capital is popular among new companies, or ventures.

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