Venture capital is a form of financing aimed at long-term investments in capital and quasi-capital instruments, convertible debt, and instruments issued by high-impact companies. The investor assumes high financial risk by investing, such as total or partial loss of the investment, and so the expected financial benefits are greater than with other conventional investments.
Venture capital generally comes from individuals who invest directly in the company or in a portfolio of companies administered by a third party that sets the parameters and makes the investments.
Venture capital is an alternative to conventional financing that allows emerging companies to obtain financial resources for a startup or bolster their product portfolio, increase capacity, improve competencies, have scalability, integrate national and international markets, or even consolidate.