Venture investments

Venture investments

Venture investments are investments designed to finance new (so-called start-ups) or growing companies, whose activities involve a high or relatively high risk level. Typically, this is a long-term investment in a company committed in exchange for a share (shares) of this enterprise, in anticipation of profitability for the investor above the average market level in this industry.

Traditionally, venture investments are used to finance innovative companies, that is, companies that embody the results of scientific and engineering developments, inventions in final products, technologies and services demanded by the market.

For ordinary banking instruments (for example, loans), such enterprises often pose too much risk. The main professional participants of the venture investment market are venture funds and private investors.