Venture capital-backed startups are businesses that launch with the support of venture capital firms or individual investors. These startups typically have innovative products, services, or technologies in early-stage development and require significant capital to scale up their operations. This can involve anything from technology development to marketing and engineering. By taking a stake in these companies, venture capitalists offer not only financial assistance but also insight and guidance that can help these startups become successful. While venture capital investments do come with risks, they can lead to lucrative returns for those willing to take that risk.