It’s a risky business, but still, somebody decided to do it. Venture capital is a sort of financing scheme that funds businesses that have been found to have some growth potential.
Venture capital is also called risk capital. For businesses that have very limited start-up capital, they could go find a venture capital investor. But for the venture capitalist, they still need to weigh the various risks involve.
A venture capital is an investment that is basically provided by third-party investors. This investment is usually used for enterprises that were deemed to be too risky that even the standard market investors or banks avoid putting a single cent on them.
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