Venture Capital

Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions. Venture capital doesn’t always have to be money. In fact, it often comes as technical or managerial expertise. VC is typically allocated to small companies with exceptional growth potential or to those that grow quickly and appear poised to continue to expand.

  • Venture capital is a term used to describe financing that is provided to companies and entrepreneurs.
  • Venture capitalists can provide backing through capital financing, technological expertise, and/or managerial experience.
  • VC can be provided at different stages of their evolution, although it often involves early and seed round funding.
  • Venture capital funds manage pooled investments in high-growth opportunities in startups and other early-stage firms and are typically only open to accredited investors.