Venture capital funds are very different from mutual funds because they only invest in early-stage, expansion-stage, and acquisition-stage businesses. While mutual funds invest in publicly listed companies. All companies that get venture capital investments to have a high chance of growth are risky and have a long-time horizon. Venture capital funds are more involved in the companies they invest in. They give advice and often have a seat on the board. So, VC funds take an active and hands-on role in how the companies in their portfolio are run and managed. On the other hand, mutual funds are not get involved in companies they invest in.