Venture capital is financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks and any other financial institutions. However, it does not always take just a monetary form; it can be provided in the form of technical or managerial expertise. Though it can be risky for the investors who put up the funds, the potential for above-average returns is an attractive payoff. In other words, venture capital typically involves investing money into early-stage companies/start-ups in order to help them grow and become profitable. At the time of investment, venture-backed companies often do not have revenues and/or positive cash flow and may require more capital (/rounds of financing) prior to the company being sold or taken public. These investments involve a substantial element of risk.