What is Venture Capital (VC)?
Venture capital is financing provided by firms or funds to startups with high growth potential in exchange for equity ownership.
Table of Contents
Full Definition
VCs invest larger sums compared to angels and typically participate in Series A and beyond rounds.
They provide not only capital but also strategic support, governance oversight, and access to extensive networks.
VC involvement often signals strong market validation and accelerates scaling efforts.
Examples
Equity financing
Strategic support
Governance
Benefits
Enables rapid growth
Access to resources and networks
Increases market credibility
Common Mistakes
Significant ownership dilution
Increased investor oversight
Conclusion
Venture capital fuels high-potential startups seeking aggressive growth and market leadership.