Venture capital: GCSE Business Definition

What is venture capital?

In GCSE Business, venture capital is money invested in a business, usually a start-up or one in its early stages, with a strong potential for growth. It is, essentially, share capital, typically provided by investors who expect to receive a high return on their investment.

Venture capital is particularly useful for businesses that find it difficult to secure finance from banks because they are seen as risky. In return for finance, venture capitalists take a share in the business for the period of their investment. They may expect to have a say in its strategic direction and may take an active role in the business’s operations. Venture capitalists often bring experience and expertise to help the business achieve objectives for growth.

Venture Capital Revision Resources to Ace Your Exams

Save My Exams has a great range of resources to explore the topic of venture capital further. 

Read our GCSE Business revision notes on sources of finance, including venture capital, or test your knowledge of venture capital in our exam questions to improve your grades. 

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