ELI5: Explain Like I'm 5

venture capital

Venture capital (or "VC") is when a person or group of people give money to people who are starting a new business. They give this money so that the business has enough money to get going and be successful. The venture capitalists expect the business to be successful, so they can make money back from their initial investment. In exchange for the money, they may get a part ownership in the company.