Venture capital is financing provided by wealthy independent investors, banks, and partnerships to help new businesses get started, reach the next level of growth, or go public.
In return for the money they put up, also called risk capital, the investors may play a role in the company's management as well as receive some combination of equity, profits, or royalties.
Some venture capital also goes into bankrupt companies to help them turn around, or to companies that the management wants to take private by buying up all of the outstanding shares.
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- Accredited investor, Blind pool, Closely held, Limited partner, Limited partnership, Private equity, Privatization, Public company, Startup
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