Venture Capital

Venture Capital is the money or capital provided for new business ventures by investors other than the original proprietor. The term is sometimes also used for capital provided to rescue or turn around a company. Venture capitalists—that is, those who provide venture capital—include individuals, investment banks, and institutions that specialize in providing venture capital. 

Venture capitalists expect some of their investments to do well and some to do poorly. Their survival in business depends on picking more successful investments than unsuccessful ones. Venture capitalists face a higher risk of losing money than those providing capital to proven ventures, so they demand a higher potential return on their investment. When investing in new ventures, they often insist on owning a share of the business. As part owner, a venture capitalist can have more control over the investment and is in a better position to earn a higher return if the business succeeds than someone who lent money to the venture. The original proprietors may agree to this arrangement if it is the only way to get the money or if they want to raise funds without incurring debt. The owner may also welcome the business and financial expertise venture capitalists often provide.

source : http://www.englisharticles.info/2012/11/28/venture-capital/