Venture Capital

The term venture capital refers to temporary and high-risk equity investments in young, innovative and unlisted companies. Venture capitalists allocate part of their equity to unlisted companies in the knowledge that they could lose their capital if the company is not successful.

The company concerned does not have to pay back any money, but gives the investors shares in the company in exchange. These shares then generate a return by being sold to other companies or even through an IPO.