Venture Capital (VC) Definition

The term Venture capital (VC) usually reffers to the action of getting funding from a VC, or the actual firm that invest this capital. The VC firm is an investment firm that provides cash in exchange of equity in the startup (ownership shares).

Venture capital (VC) mostly invest in srartups focused around tech, biotech and green tech, that are believed to have long-term growth potential.

The Venture capital funds are generally raised from high net worth individuals, well-off investors, investment banks, and any other financial institutions or accredited investors.

Venture capital financing is usually presented to startup companies with exceptional growth potential, or to companies that are growning and expanding fast. This investment often take the form of early and seed round funding.

Related:
Private Equity VS. Venture Capital. The Difference.