Venture capital is a form of investment in new and risky small enterprises which is required to get them started. Venture capitalists are therefore investment specialist who raises pools of capital to fund new ventures which are likely to become public companies in return for an ownership interest. They therefore buy part of the stools of the company at a low price in anticipation that when the company goes public, they would sale the shares at a high price and make considerable capital gains, venture capitalists also provide managerial skills to the firm examples of venture capitalists are:
Pension funds, insurance companies and also individuals.
Since the goal of venture capital is to make a profit, they will only invest in that have a potential for growth.
