What is the role of venture capital in economic growth?

Venture capital (VC) plays a critical role in economic growth by funding early-stage companies and startups that have high growth potential. Venture capitalists provide financial backing to entrepreneurs who are developing innovative products or services but may not have access to traditional financing. By supporting these startups, venture capital encourages entrepreneurship, job creation, and technological advancement. In return, VC investors hope to achieve significant returns on their investments if the company succeeds. The role of venture capital is especially important in sectors such as technology, biotechnology, and clean energy, where substantial upfront investment is required.