Venture capital is a mechanism that is developed by a group of investors. Its aim is to give support financially to business startups and entrepreneurial talents that are at risk of falling due to a lack of finances. They do this to get substantial financial gains.
Such investors deal with startups that have the potential to grow into significant investments. To increase this probability, they tend to invest in multiple companies. It is usually a try and error method, so they aim at enormous financial benefits to gain a good amount of capital.