U.S. Small Business Administration | Venture Capital Program (Equity Financing). Find this information useful? Click here to access more information from the U.S. Small Business Administration. Venture capital is a type of equity financing that addresses the funding needs of entrepreneurial companies that for reasons of size, assets, and stage of development cannot seek capital from more traditional sources, such as public markets and banks. Venture capital investments are generally made as cash in exchange for shares and an active role in the invested company.