VC Business Definition

Venture capital (VC) is a type of private equity financing provided by venture capital firms or funds to startups, early-stage companies, and entrepreneurs with high growth potential. VC firms invest money in these companies in exchange for equity or a share in the company's ownership and future profits. The goal of venture capital is to support promising startups and help them grow into successful businesses. The investors expect high returns on their investments, typically through an initial public offering (IPO) or acquisition of the company.