Glossary
Definition
Venture Capital
Private funding provided to early-stage, high-growth startups in exchange for equity.
Venture capital (VC) is a form of private equity financing provided to startups and early-stage companies with high growth potential. VC firms invest in exchange for equity stakes. Successful VC investments can generate returns of 10x–100x or more when portfolio companies are acquired or go public.
Frequently Asked Questions
What is the difference between venture capital and private equity?
VC focuses on early-stage, high-risk companies. Private equity typically acquires established companies, often using debt (leveraged buyouts). VC investments are typically smaller; PE deals can run to billions.