Venture Capital is a form of private equity investing where investors take a chance on early-stage small companies/businesses they believe have high growth potential.
Successful Venture Capital investments can provide exponential returns that outpace the returns of the public equity market (15% or more vs 7–10%).
Early-stage investing allows for catalyzing the growth of innovation and supporting the creation of revolutionary solutions to society's problems.
The most challenging aspect of Venture Capital is the high risk involved, as most startups fail and the investment horizon tends to be longer.