Salinipranav
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Wils24
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Vinod_kumar744
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Venture capital is a term to describe the financing of startup and early stage businesses as well as businesses in "turn around" situations. Venture capital investments generally are higher risk investments but offer the potential for above-average returns. A venture capitalist (VC) is a person who makes such investments. A venture capital fund is a pooled investment vehicle (often a partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans. A limited partner is a person or organization who invests capital in a venture capital fund for financial gain.

A general partner is a venture capitalist who manages the fund and makes investments. Investments by a venture capital fund can take the form of either equity participation or a combination of equity participation (typically with preferred stock) and debt obligation—often with convertible debt instruments that become equity if a certain level of risk is exceeded. In most cases, the venture capitalist becomes part owner or a member of the Board of Directors of the new venture.

Most investments are structured as preferred shares—the common stock often reserved by covenant for a future buyout, as VC investment criteria usually include a planned exit event (an IPO or acquisition), normally within three to seven years. In case a venture fails, then the entire funding by the venture capitalist has to be written off.

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hi all
Definition:- Venture Capital is a term which is used to describe very high risky capital. It is a method to raise finance. Its major Features:-
1. It involved very high risk. Risky projects space research experiments etc.
2. It may involve a foreign country even.
3. It will have heavy capital outlay.
4. It will involve high repayment period.
5. Venture capital will be provided to compnies which have high profit and growth potentials
Regards,
Salini Pranav :)

Venture capitalists are professional investors who specialize in funding and building young, innovative enterprises. Venture capitalists are long-term investors who take a hands-on approach with all of their investments and actively work with entrepreneurial management teams in order to build great companies
In nutshell, the term venture capital is explain below-
Venture capital is nothing but Risk Capital.
Capital invested in a project in which thee is a substantial elements of risk, especially money invested in a new venture or an expanding business exchange for shares in the business. Risk capital is normally invested in the eqyuity of the company.:wacko:

It is a private or institutional investment made into early-stage / start-up companies (new ventures). As defined, ventures involve risk (having uncertain outcome) in the expectation of a sizeable gain. Venture Capital is money invested in businesses that are small; or exist only as an initiative, but have huge potential to grow. The people who invest this money are called venture capitalists (VCs). The venture capital investment is made when a venture capitalist buys shares of such a company and becomes a financial partner in the business.
Venture Capital investment is also referred to risk capital or patient risk capital, as it includes the risk of losing the money if the venture doesn’t succeed and takes medium to long term period for the investments to fructify.
Venture Capital typically comes from institutional investors and high net worth individuals and is pooled together by dedicated investment firms.
It is the money provided by an outside investor to finance a new, growing, or troubled business. The venture capitalist provides the funding knowing that there’s a significant risk associated with the company’s future profits and cash flow. Capital is invested in exchange for an equity stake in the business rather than given as a loan.
Venture Capital is the most suitable option for funding a costly capital source for companies and most for businesses having large up-front capital requirements which have no other cheap alternatives.
Venture capital funding is most widespread in the fast-growing technology and biotechnology fields.

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