Venture Capital is a term used for the money, or capital, provided to early-stage, high-potential, high-risk start-ups. The Venture Capital Fund (VCF) gets an equity stake in the start-up, in lieu of the funds it provides. These start-ups, usually own a novel technology or choose to operate in high technology industries, such as biotechnology, IT, mobile, internet and software.
Venture Capital investment, mostly, takes place after the seed or angel funding. It is considered growth funding because it generates a return, when the start-up goes for an IPO, trade sale, strategic investment etc.