Venture captial: Making the right move at the right time
Venture capital is a type of equity funding, meaning that an investment is made in a company for the purpose of receiving shares in said company, along with other collateral (usually an insurance policy). Selling shares of one's company also means sharing ownership and ultimate control over the business. The more shares that are sold, the less control the original owner has over the company. This type of funding may be attractive for new companies with limited credit and operating history that may have difficulty raising capital in public markets or from debt funding, such as bank loans.