Venture Capital (VC) is an investment company, interested in private equity investments to startups that manifest a high growth ability in exchange for an equity stake. This could be funding start-up ventures or supporting small companies that wish to expand but do not have access and resources to equities markets. Venture capitalists are prepared to take a risk by investing in such companies because there is a big probability to earn a massive return on their investments if invested companies reach success. However, VCs experience high rates of failure due to the uncertainty that is involved with new and unstabilized companies. A venture capitalist is an investor who provides venture capital funding to startups with growth potential in exchange for a stake in the company, known as equity. VCs invest in startups and nurture them in hopes that they’ll receive big returns as the company expands. Due to the 90% startup failure rate, VCs tend to be picky about their investment choices since they’re making risky business investments that they may not get returns on.
