CAT / FIA FFM Syllabus D. Financing Decisions - Venture capital - Notes ^{4 / 5}

Startup or growth equity capital or loan capital provided by private investors (the venture capitalists) or specialized financial institutions (development finance houses or venture capital firms).

Venture capital is a type of funding for a new or growing business.

It usually comes from venture capital firms that specialize in building high risk financial portfolios.

With venture capital, the venture capital firm gives funding to the startup company in exchange for equity in the startup.