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What is a venture fund in traditional finance?

A venture capital fund in traditional finance is an investment institution that specializes in high-risk but potentially high-return projects and ventures such as start-ups, innovation, technology development and other areas where economic success depends on the successful commercialization of new ideas or technologies.


Venture capital funds are usually managed by professionals who are looking for promising businesses that require investment for rapid growth and development. They often provide capital at an early stage when other sources of financing are less available. Venture capital investments include both direct investment in a company's capital and the provision of loans.


In traditional finance, venture capital funds can be private or public and are regulated by government agencies and financial markets.