Venture capital has emerged as an important area of finance for academic researchers. It can be defined broadly as the investment by professional investors of long-term, risk equity finance where the primary reward is an eventual capital gain, rather than interest income or dividend yield. This review encompasses the range of investment stage activities undertaken by venture capitalists, which includes development capital, management buy-outs and management buy-ins. The book aims to draw together a set of readings which cover the principal issues raised in venture capital. The papers are grouped under five main headings: the institutional framework; the venture capital process - screening, valuation and contracting; venture capital monitoring; investment realization and performance; and alternative sources of venture capital - informal venture capitalists, corporate venture capital and relationship banking.