Venture Fund

A venture fund is a type of investment fund that pools capital from multiple investors to invest in startups and early-stage companies with high growth potential. Managed by venture capital firms, venture funds seek to provide equity financing in exchange for ownership stakes in these companies. The goal of a venture fund is to generate high returns by helping the companies grow and eventually exit through a sale, merger, or initial public offering (IPO).

Example

A venture fund invests in several technology startups, providing them with the capital needed to expand operations, with the goal of achieving high returns when the companies are sold or go public.