Venture Capital is a form of financing that investors provide to startup companies and small businesses with perceived long-term growth potential. This funding is crucial for entrepreneurs who may not have access to traditional forms of financing, such as bank loans. In exchange for their investment, venture capitalists typically receive equity in the company, allowing them to share in its future success. The venture capital process often involves multiple stages, including seed funding, early-stage funding, and later-stage funding. Investors not only provide capital but also offer mentorship and guidance to help startups navigate challenges. Successful venture capital investments can lead to significant returns, especially if the company goes public or is acquired by a larger firm.