This form of investment can come in the form of one very wealthy individual or from a group of wealthy individuals, intent on investing into a venture that has promising prospects.

There are also companies designed and set up for the purpose of sourcing for and investing in startup businesses and already small successful businesses that may be looking to expand their operation, but lack the financial backing needed. The venture capitalist play a very important role in extending such financial help to those looking for financial backing but don’t have the proper credential to approach establishments such as banks, government loan institutions or finance houses.