Venture capital
Venture capital is money that is invested or is available for investment in a new company, especially one that involves risk [Cambridge Dictionary].
Venture capital generally comes from well-off investors, investment banks, and other financial institutions. However, it does not always take a monetary form; it can also be provided through technical or managerial expertise. Venture capital is typically allocated to small companies with exceptional growth potential or companies that have overgrown and appear poised to continue expanding.
Though it can be risky for investors who put up funds, the potential for above-average returns is an attractive payoff. For new companies or ventures with a limited operating history (under two years), venture capital is increasingly becoming a popular—even essential—source for raising money, especially if they lack access to capital markets, bank loans, or other debt instruments. The main downside is that the investors usually get equity in the company and, thus, a say in company decisions [Investopedia].
Venture capital. Cambridge Dictionary. Retrieved from: https://dictionary.cambridge.org/dictionary/english/venture-capital
Venture capital. Investopedia. Retrieved from: https://www.investopedia.com/terms/v/venturecapital.asp