A new venture refers to the establishment and development of a business or project with a fresh vision and purpose. It involves the creation of an enterprise that introduces innovative ideas, products, services, or business models that disrupt existing markets or create new ones. New ventures can range from small-scale startups to large-scale multinational corporations and can be for-profit or non-profit organizations. The scope of a new venture extends across various sectors, including technology, finance, healthcare, manufacturing, and more.

Research on new ventures is a relatively new field, and earlier work tended to focus on the determinants of new venture performance, including firm strategies and industry structure or founding conditions. Recent books have offered a more comprehensive view of the management issues related to the growth of new ventures. One of the fundamental features of a new venture is its focus on innovation and creativity. New ventures strive to introduce novel ideas, products, services, or business models that disrupt existing markets or create new ones. They leverage inventive thinking and embrace a mindset of continuous improvement and adaptation to stay ahead in the market.

Venture capital is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth. Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. In addition to angel investing, equity crowdfunding, and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. Venture capital is also a way in which the private and public sectors can construct an institution that systematically creates business networks for the new firms and industries so that they can progress and develop.