I. It mostly focuses on backing young businesses who are having trouble entering the capital market in their initial stages of development. II. In order to carry a fixed yield for the venture capital sources, this financing may also be loan-based or in the form of nonconvertible debentures. III. Investors in venture capital seek to profit financially from the success of the company that borrows. IV. It is a long-term investment in businesses with strong growth prospects. The allocation of venture capital will result in the company’s quick expansion. V. The venture capital provider will also participate in the borrowing business, whereby the financier offers managerial expertise in addition to financing.