Venture capital (VC) fund is a source of risk capital. Invariably, inventions as well innovations emerge in embryonic form, generating no or loss-making revenue. However, entrepreneurs need money, and also advise, to keep nurturing them to exploit latent profit-making potential. Due to the lack of collateral, unproven business potential, and loss-making revenue, often, they do not qualify for debts. In addition to risk, often, there is also the potential of making high profits. To tap into this opportunity, people having expertise in managing such ventures started offering both risk capital and also advice to these entrepreneurs–in exchange of partial ownership. The formal journey started in the early 1960s in Silicon Valley. If invested ventures succeed, investors get their investment back by offloading shares in the capital market.
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