- Funds given to early stage, high potential, high risk, startup companies with no access to capital markets
- High risk for the investor, but potential for above-average returns
“In exchange for the high risk that venture capital investors take on in investing in smaller companies, venture capitalists usually get significant control over company decisions and also a significant portion of the company's ownership (and consequently value).”
Reference, read more: http://www.investopedia.com/terms/v/venturecapital.asp#ixzz2Ap9hIX93
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