Risk capital

Venture capital is a type of investment that is usually only given to companies that have a high potential for growth and can provide good returns in the future. The reason why it is called venture capital is because there is usually a high risk of losing all or part of the capital if the company does not develop. This is why this type of investment is quite rare, as investors are more selective in which companies they believe can make great progress while not incurring excessive losses. The investment can sometimes be time-limited, which means that the investor can withdraw the shares if the company does not reach its targets within a certain period.