Venture capital is a type of funding for new or emerging business. Venture capital firms provides fund to the startup. Company in exchange for equity. It is a form of financing that is provided by the firms to small, early stage, emerging firms that are deemed to have high growth potential. Venture capitalists take the risk of financing risky new startups in the hope that if they will support them, they will become successful. Venture capital comes from well off investors, investment bank a, and other financial institutions. Venture capitalists has the power to take major decisions of the company they are investing in and can also help them by providing technical or managerial expertise. However often it doesn't invest in early stage of the startup unless there are compelling reasons. These firms has good network and contacts in the business industry which can bring a lot of benefits for entrepreneurial venture. An entrepreneur may lose management control over his firm incase venture capital firm 's has more than 50% share. But they can help young entrepreneurs to take quick and active decisions by providing support in legal, tax and other financial matters. Thus, leads to quick growth and greater success in their business ventures.
Himani BalotiaTop Contributor
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