Venture Capital

Venture capital is also private equity. Like private equity, venture capital is invested in companies, but it is primarily invested in companies which are in their early stages.

With early stage companies, the risks are rather high and the profits can also be rather high. In most cases, venture capital is private equity that is earmarked for new startup companies.

An investor who invests venture capital or works for a venture capital firm is known as a venture capitalist.