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|Keywords=Business, Venture capital, Start-ups

|Primary Billing=AccMcNair01

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Venture Capital, as defined by Investopedia(1), is "financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential". It acknowledges that "risk is typically high for investors," and that venture capital is an "essential source of money." Finally, Investopedia qualifies VC by reminding the reader that in exchange for the funds, venture capitalists usually get a say in startup company decisions. Despite this seemingly clear cut definition, a variety of different and institutions fall under this description in a strict sense, but differ greatly in practice.