Venture capital (VC) represents an aspect of private equity that provides funding for start-ups and small companies with growth potential.Investments made by venture capitalists go towards supporting new companies or small firms that want to grow but can't access the equity markets.Venture capital is an essential source of finance for start-ups that lack access to bank loans, capital markets, or other forms of debt.Venture capital funds are established by venture capital firms and consist of funds from various investors, corporations, or funds.