What is the exact definition of Venture Capital? What is the purpose?

Quote-- Venture capital (also known as VC or Venture) is a type of private equity capital typically provided for early-stage, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. --unquote-- Essentially, VCs are people who are looking for new companies/people/ideas to invest in.In return for money, VCs are given a piece of the company/person/idea.

The company/individual gets cash to expand or improve their business.

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