Venture capital

This refers to finance provided to businesses in the early stages of development, or for new projects/products in their early stages of development.

Venture capital is typically provided in return for an equity stake in the business, providing a potentially higher rate of return to reflect the higher level of risk for the investor. Investors may be individual venture capitalists (or ‘business angels’) or venture funds.

Venture capital is a term normally found in financial management.

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