What does venture capital mean ?

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Venture capital refers to a type of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that are deemed to have high growth potential. This funding is crucial for these companies as it helps them to:Develop new products or servicesExpand their operationsEnter new marketsTypically, venture capital investments are made in exchange for equity in the company, meaning that the investors receive a share of ownership. The goal of venture capitalists is to achieve a significant return on their investment when the company either goes public or is acquired.Venture capital plays a vital role in the innovation ecosystem by providing the necessary resources for entrepreneurs to turn their ideas into viable businesses.