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Venture Capital

Definition

Venture Capital represents private equity funding provided by firms or funds to startups and small businesses with perceived long-term growth potential. In the digital asset space, venture capital plays a crucial role in funding the development of new blockchain protocols, decentralized applications, and crypto-focused companies. These investments typically involve significant risk but offer the potential for substantial returns as the funded entities mature and scale. The allocation of venture capital often signals areas of innovation and anticipated growth within the sector.