Venture Capital

Venture capital companies are companies that provide the necessary funding for those with business ideas that they would otherwise be unable to finance. The venture capital companies in essence provide an initial loan for new companies that they feel will be profitable. Because venture capital companies assume the financial risk for the new businesses, they often acquire an ownership interest in them and have the rights to a percentage of the profits of the new company. Some venture capital companies provide the initial funding in return for future reimbursement that far exceeds the original amount of their investment. This section provides information on venture capital funding.