Venture capital refers to a type of investment that is provided to early-stage, high-potential companies. It typically comes from professional investors who pool funds from various sources and invest in these startups in exchange for an ownership stake or equity. Venture capitalists provide not only financial support but also expertise, guidance, and networking opportunities to help the business grow and succeed. The goal is to generate high returns on their investment by selling shares when the company goes public or through a successful exit via acquisition or merger.