Venture Capital is a type of private equity that works on the basis of cash being invested into businesses in exchange for a share of a business. Venture Capitalists don’t however just offer their skills to a business; they also provide managerial and technical expertise. Venture Capital is popular among new companies and new ventures.

Venture capital is a form of equity finance. It is a source of risk capital that is invested into businesses by professional outside investors to new and growth businesses.