Early years of the modern life sciences industry and respective venture capital financing transactions date back to the 1970s. Venture capital is a type of private equity, a form of financing that is provided by firms or funds to small, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth. In this article we are going to speak about three entrepreneurial finance elements which are: Business Angles (BAs), Venture Capitals (VCs), and Bank loans, with a special attention to the VCs. A comparison between these three cases will be provided and the emphasize is on VCs. The most important challenges and risk-taking by VCs will be discussed.

Entrepreneurial finance Venture Capital Bio entrepreneurship Co investment Trade off.