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Also known as: VC, venture capital firm

Venture Capital

FoundationalFundraising

Definition

Venture Capital: Venture capital is a form of private equity financing provided by firms (VCs) to startups with high growth potential. VCs raise funds from limited partners (LPs) and invest in portfolio companies, typically taking board seats and providing strategic guidance in exchange for equity.

Example Usage

“We partnered with a VC that specializes in fintech and brought valuable connections to potential customers.”

Common Misconceptions

All startups should raise VC. VC is only appropriate for businesses targeting massive scale.
VCs only care about money. Good VCs provide strategic value, not just capital.
VCs make money on most investments. Returns come from a small number of big winners.

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