Venture Capital: What and How it Works

Venture Capital provides non-conventional, risky finance to new ventures based on innovative entrepreneurship. This mode of financing is different from traditional sources of financing as venture capitalists finance innovation and ideas which have the potential for high growth but with inherent uncertainties. Apart from finance, venture capitalists provide networking, management, and marketing support as well. This paper is to understand what exactly is venture capital and what kind of finance, venture capitalists provide, and how.