Venture Model

A three- dimensional representation of a business enterprise or speculation in which a new

business id formed with a plan and expectation that financial gain will follow.

Venture backed Start-up

A venture backed start- up is used to describe a business financed by venture capital. Funds
flowing into a venture backed company are in the form of an investment rather than a loan. These
businesses are controlled by an individual or small group known as venture capitalists, these
investments require a high rate of return and secured by a substantial ownership position in the
business.

Venture capital is a type of financing that is provided by firms or funds to small, early stage,
emerging firms that are deemed to have high growth potential. Meanwhile, a venture capitalist
represents the most glamorous and appealing form of financing to many entrepreneurs. They are
known for backing high- growth companies in the early stages, and many of the best-known
entrepreneurial success stories owe their growth to financing from venture capitalist.

Venture backed firms are limited partnerships of money managers who raise money in funds to
invest in start-ups and growing firms. This funds pool of money, are raised from high net worth
individuals, pension plans and foreign investors. The investors who invest in venture capital funds
are called limited partners, while the venture capitalist, who manage the fund, are called general
partners.