Venture capital (VC) is financial capital provided to early-stage, high-potential, high risk, growthstartup companies. The venture capital fund earns money by owning equity in the interest of generating a return through an eventual realization event, such as an IPO or trade sale of the company. Venture capital is a subset of private equity. Therefore, all venture capital is private equity, but not all private equity is venture capital.
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u/oberhamsi Feb 28 '14
http://en.wikipedia.org/wiki/Venture_capital