Venture capital funds are investment funds that provide financial support to early-stage companies and startups with high growth potential. These funds typically invest in exchange for equity, meaning they acquire a share of the company. The goal is to help these businesses grow and eventually achieve a profitable exit, such as an acquisition or initial public offering (IPO). Investors in venture capital funds often include wealthy individuals, institutional investors, and family offices. They seek high returns on their investments, understanding that while many startups may fail, a few successful ones can generate significant profits that outweigh the losses.