Venture capital refers to the financing of innovative start-ups or early-stage companies with high growth potential . Venture capital investors provide capital to support these companies in scaling their business activities, developing new products or services and opening up new markets. Through their investments, venture capital investors receive shares in the company and therefore have the opportunity to achieve high returnsif the company is successful and achieves an exit. Venture capital plays an important role in promoting innovation, job creation and the growth of new companies.

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In comparison: with private equity investments, investors invest their capital in companies that have already been able to hold their own on the market for several years. Venture capital investments are therefore generally long-term investments that are linked to an increased risk, which can lead to the total loss of the capital invested. At the same time, however, very high returns are possible if the investment is successful.