Venture Capital (VC) is the money or capital provided to a fledgling company by an individual or a firm.
But we know that money doesn't a successful business make. So, just as importantly, the venture capitalist (the entity providing the capital) should value-add in other ways, from providing business know-how to technical guidance, or even just a pat on the back or a shoe in the rear when required.
Of course, venture capitalists undertake higher risks by investing their money into relative unknowns. So, in return, they receive preference shares and have a say in the important decisions to safeguard their investments. The real returns usually occur when the venture capitalist eventually liquidates its shares through an IPO, trade sale, sell-back, etc.
For young, viable companies which have difficulty raising capital, partnering with a venture capitalist could be an appealing and highly beneficial option.