The cabinet has approved the creation of a venture capital fund of Rs 1000 crore for the space sector under IN-SPACe. Let us tell you that venture capital is a form of private equity and a type of financing.

What is venture capital, how does it help a sector or businessman? Venture capital is a form of private equity and a type of financing.

Venture capital financing refers to the amount of money that is made available to companies and entrepreneurs. Investors provide venture capital to such startup companies and small businesses that show great potential for growth in the long term.

Venture capital is usually received from wealthy investors, investment banks and other financial institutions.

Another important thing is that it is not necessary that venture capital is always invested in the form of money in any startup or business.

Sometimes it can also be received in the form of technical or managerial expertise. Venture capital is usually allocated to small companies

that show the potential to register good growth or to companies that have the potential to register growth quickly and are ready to expand their business continuously.

The investor who invests venture capital usually gets equity in that company, due to which he has the right to interfere in the decisions of the company.

Venture capital funds arrange for pooled investments in high growth opportunities in startups and other early stage firms.