What's the difference between borrowing money from a bank, and getting it from a venture capitalist?

Why would someone get money from a venture capitalist instead of a bank?

What's the difference between borrowing money from a bank, and getting it from a venture capitalist?
easy answer -- Banks give "small" Loans , houses cars personal etc ,, usually venture capitalists give loans for companies looking to invest in something and usually large scale ( yea ita a bit more complicated than that but its a short answer ) - more info below
Reply:When you borrow money from a bank, you have to pay it back with interest. When a VC gives you money, you have to give the investors partial ownership in return. They are hoping you succeed so that they can sell their stake in your company, and that is how they make their money back.





Since VCs own part of your company, they may have some control on how you run the place. They can be useful if they have connections to help you sell or partner, and they may have access to more funding if needed down the road.