Venture capital (VC) is a form of private equity and a type of financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks and any other financial institutions. It not only provide the financial institution but also assist in management, technical and others. It strengthens the capital market which not only improves the borrowing concern but also creates a situation whereby they can raise their own capital through capital market. Venture capital provides long-term, committed share capital, to help unquoted companies grow and succeed. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of the success or failure of a business. Venture capital is invested in exchange for an equity stake in the business.

Abhijith S

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