Capital from individuals, pension plans, private foundations, and other sources are put into funds at venture capital and private equity firms, who in turn invest the money in businesses in exchange for part ownership. Venture capital firms usually specialize in certain industries or geographic areas, and are looking for businesses that can provide high returns on their investment either by being acquired or by going public. Because of this, venture capital financing tends to focus on newer companies in innovative industries or products often in high tech fields which have patent-protection.
The following external websites provide links to resources on venture capital for small businesses.
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