Venture capital (VC) is a form of private equity and a type of financing that
investors provide to startup companies and small businesses that are believed to
have long-term growth potential. Venture capital generally comes from well-off
investors, investment banks, and any other financial institutions. However, it
does not always take a monetary form; it can also be provided in the form of
technical or managerial expertise. Venture capital is typically allocated to
small companies with exceptional growth potential, or to companies that have
grown quickly and appear poised to continue to expand.