As investors seek to take advantage of a hot market for start-up funding and initial public offerings (IPOs), the money raised by venture capital firms reached its highest level since 2007 last year, increasing by 62 percent to $32.97bn.
Venture Capital is financial capital provided to early-stage, high-potential, and growth start-up companies. The venture capital fund earns money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology and IT.