Venture capital finance has the following features:
1. It is basically equity finance in relatively new companies.
2. It is long-term investment in growth- oriented small or medium firms.
3. Venture capitalists not only provide capital but also business skills to investee firms.
4. It involves high risk-return spectrum.
5. It is a subset of private equity.
6. The venture capital institutions have a continuous involvement in the business after making the investment.
7. Such institutions disinvest the holdings either to the promoters or in the market.
