Venture capital is called venture capital because there are many uncertainties in venture capital, which bring great risks to investment and its return. Generally speaking, venture capital is invested in high-tech start-ups. The founders of these enterprises have excellent technical expertise, but lack company management experience.
Extended data venture capital company is a professional investment company, which is composed of a group of people with knowledge and experience related to science and technology and finance. By directly investing in the equity of the invested company, it provides funds to those who need funds (the invested company).
Most of the funds of venture capital companies are used to invest in start-ups or unlisted enterprises (although the current laws and regulations have greatly relaxed the use of funds), not for the purpose of operating the invested company, but only to provide funds and professional knowledge and experience to help the invested company obtain greater profits, so it is a high-risk and high-return enterprise that pursues long-term profits.
References:
Baidu encyclopedia-venture capital