| Capital invested into small and young companies, generally in return for equity ownership. Venture capitalists (VCs) normally supply capital to companies that are small, maybe high risk start-ups, and cannot raise additional funds by listing on the stock market or borrowing from banks. In return for taking the extra risk, the VCs look for substantial equity and other benefits such as a seat on the board. Sometimes, they provide management and financial support to their investee companies. They typically look for an exit through a trade sale or a flotation of the company within 2-5 years. Also called risk capital.
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