Venture Capital is type of private equity financing provided by investors to start-up companies having a high growth potential. The investors who invest their money into these emerging businesses are termed as venture capitalists. Venture capitalists generally includes well-off investors, investment banks and other financial institutions. These investors seek higher returns possibility by doing investors in businesses having exceptional growth potential. However, these types of investments are quite risky as they are of illiquid nature and their return is totally dependent upon the company growth. They may provide better returns to investors if a right venture is chosen by them for doing an investment. Venture capital may not always be provided in the form of monetary, but also includes any managerial or technical expertise provided to companies. It is an efficient source of capital available to a company that brings in both wealth and expertise without having any obligation on business to repay the money.

Abhijith S

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