Venture capital

form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or demonstrated high growth
(Redirected from Venture capitalist)

Venture capital is a type of private equity capital.

Typically it is provided by outside investors to new businesses that promise to grow fast. Venture capital investments are usually high risk, 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 limited 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.

Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of rich investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies, or ventures.

Venture Capital firms can go public after they have reached a certain stage of growth. Given that Venture Capital firms are financial investors in portfolo companies, they are expected to add value by consistent value addition.

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  • Raghupathy, M. B.; Thillairajan, A. (2015-05-31). "Financial Value Creation: A Comparative Study of VC-Backed IPOs and Non-VC-Backed IPOs in India". The Journal of Private Equity (Retired). 18 (3): 55–71. doi:10.3905/jpe.2015.18.3.055. ISSN 1096-5572. S2CID 154642807.
  • National Venture Capital Association
  • Venture Capital Glossary Archived 2007-09-29 at the Wayback Machine
  • Ricafe2 Archived 2007-10-05 at the Wayback Machine - A Research programme sponsored by the European Commission analysing venture capital.
  • Venture Capital News & Blog: