Venture capital refers to investment in new and

untried enterprise that are lacking a stable record of growth.

It is defined as a financing institution which join an

entrepreneur as a co-promoter

in a project and

share the risks and rewards of the enterprise.

Venture capitalist pool their resources including:

Managerial abilities to assist new entrepreneurs in

the early years of project.

Once project reaches the stage of profitability they

sell their equity holding at high premium.

 Investment is usually made in small & medium scale

enterprise.
Venture

capital is usually in the form of equity

participation.
Investment is made only in high risk but high growth

potential projects.

 Venture

capital

is

available

only

for

commercialization of new idea or new technology.

Venture capital join the entrepreneur

as a co-

promoter in project and share the risk and rewards.

There is a continuous involvement in business after

making an investment by the investor.