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Venture capital is money provided by professionals who invest alongside management in young, rapidly growing companies that have the potential to develop into significant economic contributors. Venture capital is an important source of equity for start-up companies. According to the Securities Exchange Commission of Pakistan (SECP) venture capital is defined as follows: Venture project means a company, as defined in the Companies Ordinance, 1984, a partnership or a sole proprietorship, which is engaged in a business activity and has such characteristics as may be notified by the Commission, from time to time to be treated as venture projects. Venture capital company means a company which is principally engaged in financing a venture project, through equity or other instruments whether convertible into equity