Capital which the owners are willing to invest in equity in new and untried projects, where there is a recognized chance that they will lose it. Venture capitalists are willing to take these risks if they expect that their successes will make sufficiently large profits to keep their average return positive, in spite of some losses. Venture capital may be provided by individuals who are almost or entirely risk-neutral, or by investment banks and other organizations which are large enough to be able to spread their investments sufficiently to reduce risk to acceptable levels by risk pooling.