Venture capital (VC) is a form of private equity financing that is provided by venture capital firms to startups and early-stage companies that have been deemed to have high growth potential in industries such as technology and biotechnology.
A venture capitalist not only provides capital to start-ups they believe in but also provides strategic advice, resources, and networking opportunities. They typically take a hands-on approach, hoping to maximize their investment by actively helping the company to grow and succeed. The ultimate goal of venture capital investment is often to bring the company to an initial public offering (IPO) or to sell the company in a merger or acquisition which provides a significant return on the original investment.