VE - Venture Capital 

Venture Capital on the other hand is a part of Private Equity. Venture Capital funds specifically invest in start-ups or SMEs (Small and Medium-Sized Enterprises) that show great potential for growth. Their focus is mainly on sourcing, identifying and investing in the right investment opportunities with good financial prospects.

Moreover, Venture Capital investors have a say in business decisions. Venture Capital firms only invest in about 50 percent or less of a company’s equity. There are a number of Venture Capital firms that invest in multiple businesses to spread their risk, which keeps them from suffering huge losses if one start-up fails to survive in the long run.