In venture development, capital is used to finance start-up businesses in a region in an attempt to bolster economic growth as well as to create jobs. It is the proliferation of new technologies and other segments of the economy that might not be proven in mainstream circles but that pose great potential for the future growth of an industry. There are risks associated with venture development because the recipients of the financial support often have no proven profits yet. When successful, however, the benefits of funding and other types of venture support can last for decades or longer. Also, in addition to financing, venture developers might focus on attracting top talent to a region so that businesses have the means for continued success.
Throughout a region where much of the economic stability and growth can be attributed to new businesses that began with entrepreneurial ideas and financial backers who were willing to take chances, the economic conditions may likely be due to venture development. Some of the largest and most historical businesses in a city might have roots in venture financing, possibly dating back decades. Venture capital is the financing of new and often unproven businesses that need financial backing to grow. Nonprofit organizations have been known to contribute to the proliferation of venture development by raising funds from investors in the public and private sectors and directing those assets toward new businesses.
It is quite possible that venture development in a region is led by an organization that is dedicated to supporting economic growth in that city, state, or province in particular. The goal is to not only help entrepreneurs and share in profits but also to create jobs in a region and contribute to economic growth there. In addition to funding local economies, venture development might also single out specific industries, such as technology, as recipients of the funding.
The goals of a venture developer should be outlined in marketing material that is available to the public. In addition to financial backing of new businesses, venture developers are also likely to provide other types of support, including advisory, marketing, and product-testing services so that businesses with the greatest potential will contain every mechanism to achieve success. Venture developers could raise money in an individual fund and pledge support of new businesses over a specific period of time, such as the next decade.