Islamic finance is currently undergoing a rapid phase of development. One of the components of the Islamic finance that undergo the development is Islamic venture capital (VC-i). VC-i plays its role as a source of financing for investment and project purposes. This paper intends to investigate thoroughly the development and application of the VC-i as this market started to emerge although it was newly introduced. Various instruments of VC-i have introduced and applied in many projects especially long term basis project. Hence, the mechanism of those instruments needs to be analyzed critically...