In today worlds, Venture capitalists play an important role in financial word, ie, by giving or investing in potential companies that would have an impact on society and make people lives easier. Venture capital is capital or fund attained from private investors in exchange of partly ownership and to benefit from the companies long term success. It is a type of private equity or financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from high-net worth individuals, investors, investment banks and any other financial institutions. Venture capital is commonly invested  to small companies with exceptional growth potential, or to companies that have grown quickly. Start-Ups are mostly benefitted fron the evolution of Venture capital funds.

Nowadays, almost every prominent companies have got help from the Venture capitalists(Angel Investors) in their early stages and even the industry leaders like Amazon, Apple, Microsoft and Facebook expanded only beacuse of the funds from venture capitalists in the begining phase. Like wise, everything, Venture capital has managed to influence the market eventhough there there are some disadvantages(cons).

ADVANTAGES:

1)The company have the oppurtunity to expand(expansion). Venture Capital provides the necessary capital, ie, no help from the bank is neede, hence there is no interest in the capital. Venture Capital(VC) ensures additional resources to expand in long term. Substantial funding is ensured through Venture Capital.

2)Since, small companies would lack experience in business world, so the Venture Capitalist provides with valuable expertise and guidance in financial sense. Venture Capitalist allocates their business expertise to motivate the companies performance. Experience of Venture Capitalist is passed upon.

3)Venture Capitalist hepls in associating with positive business connections and building strong networks through which the company is benefitted.

4)Repayment of funds is not neccessary, but it must be the best interest of the company, ie, no obligation for repayment. The money is yours to hold onto(yours to keep). This ensures long term solution in areas of funding and gives hand-on support. This boosts the confidence and make the company more open to risk.

Some other Advantages of Venture Capital, It encourages enterprenuarship and helps in innovations(even to establish their own industry), Gives you next stage of groth to the comapny and supersede blames.

DISADVANTAGES:

1)In return of the funds allocated by Venture Capitalist partly ownership is traded, ie, shares are being given away. This would result in Diminished ownership and the loss of Equity. Your investor would own stake in your company and could lead to dilution of ownership and control in the company. Loss of control in your company.

2)Decision making powers are reorganised in the company due to the influence of Venture Capitalist. Management may be forced in decision making and take long time to decide, ie, limited decision making ability. Decisions are hard to get approved and organisational structure is reorganised.

3)Convincing Venture Capitalist can be too long and expensive process. Raising funds is an difficult process. Funding problem would be common ie, improper timing in fund allocation.

4)Venture Capital is not an easy or a quick fix, sometimes your company may not be in the position to grow. So it is important to be consious when the funds should be allocated.

Some other Disadvantages of Venture Capital are, Venture Capitalist may demand high retuen on their investment, May contribute to under valuation and loss authority may be common in the company.

Even with the disadvantages, Venture Capital is helpful and resourcefull and plays an important role in financial world as well as in upbringing the society in terms of ideas and innovations. I hope i have answered properly, thank you, have nice day.