Venture capital is a type of cash provided by investors or venture capital firms to new and upcoming businesses. It is generally in the form of cash, in exchange for shares in the invested company. A person dealing with this sort of an investment is known as, ‘a venture capitalist’. A venture capital fund is the money of a third party investor given to enterprises that are considered as high risk investment for standard capital markets, especially for bank loans. The capital investment primarily comes from investment banks, financial institutions and wealthy investors. In the past, a boom in the Internet related businesses had seen a sharp increase in venture capitalists investing in online enterprises. But due to frequent market fluctuations, the investors began to refrain from such types of risky endeavors. (more…)