What term is used for an investor or firm that provides money to startups?

The term "Venture Capitalist" refers to an investor or firm that specifically provides funds to startups and small businesses with perceived long-term growth potential. Venture capitalists typically invest in early-stage companies in exchange for equity, or an ownership stake, in those companies. Their involvement often goes beyond just providing capital; they may also offer valuable managerial expertise, industry connections, and advice to help the startups grow and succeed.

This role is crucial in the entrepreneurial ecosystem, as venture capitalists play a key part in funding innovation and turning ideas into viable businesses. They are generally looking for higher risk/high reward investments, which is characteristic of early-stage companies that may not have an established track record or predictable revenue streams.