Venture capitalists are investors who provide funding to startups and small businesses with high growth potential in exchange for equity, or ownership stake. They play a crucial role in the entrepreneurial ecosystem by offering not just capital, but also mentorship and strategic guidance to help companies scale. Typically, venture capitalists invest in early-stage companies that are too risky for traditional financing. They conduct thorough due diligence to identify promising ventures, often focusing on sectors like technology, healthcare, and clean energy. Successful investments can yield significant returns, making venture capital a high-stakes but potentially lucrative field.