Venture Capital is reserved for companies that are in high growth, but have established themselves as likely to succeed. This type of capital doesn’t come into play until a 2nd or 3rd round of funding and usually in significantly larger chunks of a couple hundred thousand to a million dollars or more.
Venture Capital is most often used for growth after a model is proven, but sometimes can be used for acquisitions of weaker companies, merging them together to create a new stronger healthier company.
