What is venture capital?

Venture capital or risk capital is a form of financing aimed at startups, companies with high growth potential but also with a high risk of failure.

It consists of investing money in exchange for a shareholding in the company. Thus, instead of granting loans, investors acquire a part of the company in exchange for their investment.

In addition to capital, they can provide advice and contacts.

This modality is key for the entrepreneurial ecosystem, since it supports innovative projects in initial stages when it is difficult to access traditional financing.

Related concepts

• Equity
• Pitch
• Social capital
• Cap table