Explanation

Venture capital funds are provided by a group of investors having spare resources. They all collectively provide the capital required by a firm as a single investor might not be able to fulfil the large capital requirements of growing firms. The investors of such companies are called venture capitalists.
The venture capitalists generally assume high risks with the objective of earning higher returns.

Verified Answer

A venture capital fund is the capital provided by a group of investors or venture firms to start ups or emerging companies having high growth rates in return for equity ownership.