Venture Capital is a company which helps in providing support to the company by way of funds to small, emerging, early stage, start up companies. Venture capitalist invests in the areas
Where there is high growth potential in terms of profits. In exchange for equity these investments are made in growing companies or in the startups where venture capitalists have ownership stakes. These companies takes risk in terms of finance in order to take output of the startup company in future. Startups are evaluated by the venture capitalists on the basis of innovative technology, business model, strategies and urge of being successful. These companies focused on the specific sectors which are running successfully or which have acquired the market. The equity stakes in the business depends upon the Profitability of the company, that is why while selecting companies venture capitalists are very selective in choosing company of this type. Ventures are interested in companies which have high growth potential as such opportunities are capable of providing financial returns and also exit after the specified time frame.


