Venture Capital.

Venture capital is a type of financial support given to startup businesses that cannot obtain capital, or money, through traditional financing, such as banks. Venture capital is a private investment rather than a loan; venture capital firms invest funds into a company in exchange for equity, or ownership. Venture capital commonly funds young companies with a high potential for growth. Most venture capital firms invest in innovative businesses, usually in the biotechnology and information technology industries. This type of financing seeks a large return on investment. The growth potential of a company cannot be guaranteed, however, making venture capital a high-risk investment.