BizSugar.com › Finance › An Introduction to Venture Capital : Money :: American Express OPEN Forum

Venture capital — capital investments made by either private investors or investment firms — focus on giving new businesses the money they need to grow rapidly. Of course, venture capitalists expect a profit from their investments; they look carefully for companies with a potential for major growth so that they can realize a profit during an IPO or sale of the company. Most venture capital investments are made in exchange for shares in the company. Venture capital can be an option for certain small businesses, although not all companies are a good fit.