Venture Capital, often shortened to VC, is a form of private equity which finances early-stage companies and start-ups.
This investment is usually given to companies expected to have a high growth potential, or have already shown high growth in terms of revenue and employees.
Venture Capital firms invest in start-ups in exchange for equity, or ownership stake, in the company they are funding.
Today, many start-ups looking for funding are usually from the high technology industries, such as social media or IT. Usually, VC funding only happens after a seed funding round. This is a form of securities offering for companies not usually generating its own cash yet.