Capital provided by private investors in exchange for shares in the venture.
Venture capital is a corporate finance term that refers to the capital that private investors commit to business projects and ventures as a means of financing them. This capital is usually in the form of money and generally comes to small-scale ventures that are just starting up. Thus, it also serves the role of seed capital and allows private investors to have stakes in the company.
Capital ventures are largely tied to the activities of angel investors. These are business sponsors that are almost always on the lookout for profitable business starters.