Venture Capital

Money loaned to fledgling startup companies in order to help them expand their initial operations and "get off the ground."

Significance

Venture capitalists are willing to accept the high risk that goes with funding startups in return for a chance at outsized returns on their investment, typically with a space of three to seven years. Venture capitalists are very selective with what companies they select to fund, but without this money, many of today's thriving companies would never have survived their infancies.

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