Venture Capital (VC)

Venture capital is a form of private equity focused on providing funding and guidance to innovative startups and early-stage companies with high growth potential. Venture capital firms raise pools of capital from institutions and wealthy individuals to invest in exchange for equity stakes in these businesses. The startup companies get the capital needed to finance product development, hiring, marketing and other operating needs in order to scale their businesses. Venture capitalists also provide startups with mentorship to increase the odds of success. They help assemble management teams, shape business strategies and facilitate key partnerships. The venture funds earn returns by selling their equity stakes once portfolio companies reach liquidity events like IPOs or acquisitions. Venture capital plays a key role in financing the innovation economy by allowing emerging companies to grow.