 Venture Capital VC is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth in terms of number of employees, annual revenue, for both venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake, in the companies they invest in. Venture capitalists take on the risk of financing risky startup UPS in the hopes that some of the firms they support will become successful. Because startups face high uncertainty, VC investment do have high rates of failure. The startup UPS are usually based on an innovative technology or business model and they are usually from the high technology industries, such as information technology, IT clean technology or biotechnology. The typical venture capital investment occurs after an initial seed funding round. The first round of institutional venture capital to fund growth is called the series around. Venture capitalists provide this financing in the interest of generating a return through an eventual exit event, such as the company selling shares to the public for the first time in an initial public offering IPO or doing the merger and acquisition also known as a trade sale of the company. In addition to angel investing, equity crowdfunding and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and early stage companies, venture capitalists usually get significant control over company decisions. In addition to a significant portion of the company's ownership and consequently value, start UPS like Uber, Airbnb, Flipkart, Ximein and Divi choosing are highly valued startups where venture capitalists contribute more than financing to these early stage firms. They also often provide strategic advice to the firm's executives on its business model and marketing strategies. Venture capital is also the way in which the private and public sectors can construct an institution that systematically creates business networks for the new firms and industries, so that they can progress and develop. This institution helps identify promising new firms and provide them with finance, technical expertise, mentoring, marketing know-how and business models. Once integrated into the business network, these firms are more likely to succeed as they've become nodes in the search networks for desiring and building products in their domain. However, venture capitalists' decisions are often biased, exhibiting for instance over confidence and illusion of control, much like entrepreneurial decisions in general.