Venture capital is a professionally managed pool of money used to finance new and often high-risk firms. Venture capital is generally provided by investment institutions or private individuals willing to back an untried company and its managers in return for an equity investment in the firm. Venture capital firms do not make outright loans. Rather, they purchase equity interests in firms that give the venture capitalists the same rights and privileges associated with equity investments made by the firm’s other owners. As equityholders, venture capital firms are not generally passive investors. Rather, they provide valuable expertise to the firm’s managers and sometimes even help in recruiting senior mangers for the firm. They also generally expect to be kept fully informed about the firm’s operations, any problems, and whether all firm owners’ joint goals are being met.