What is Venture Capital?

venture capital

Venture Capital, often shortened to VC, is a form of private equity which finances early-stage companies and start-ups.

This investment is usually given to companies expected to have a high growth potential, or have already shown high growth in terms of revenue and employees.

Venture Capital firms invest in start-ups in exchange for equity, or ownership stake, in the company they are funding.

Today, many start-ups looking for funding are usually from the high technology industries, such as social media or IT. Usually, VC funding only happens after a seed funding round. This is a form of securities offering for companies not usually generating its own cash yet.

Who’s raising money?

Technology Term:

Venture Capital

Standard Definition Exists?

Capital invested in a project in which there is a substantial element of risk, typically a new or expanding business.

Accepted Acronym:

VC

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