Venture capital (VC) is a form of Private Equity financing that is provided by Venture Capital firms or funds to startup‘s, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth (in terms of a number of employees, annual revenue, or both). Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake, in those companies. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful.