Venture Capital - GCSE Business Definition

What is venture capital?

In GCSE Business, venture capital is finance invested in a business by individuals or firms that specialise in funding more risky businesses.

Venture capital is usually provided in return for shares in a business and a generous share of profits. They expect the value of their shares to rise, providing a healthy return on investment. Venture capitalists often expect to have some influence over how the business is run, and frequently bring expertise and valuable experience to a business, helping it to grow.