Definition: Venture Capital is financial capital provided to an early-stage, high-potential, high risk, growth startup company.
The typical VC investment occurs after the seed funding round to fund further growth.
The VC provider makes money by owning equity in the companies it invests in, through an IPO or trade sale of the company.
VC is a subset of private equity. Therefore, all VC is private equity, but not all private equity is VC. Other forms of private equity include angels investors and crowdfunding.
More on corporate finance: Angel Investor, Business Divestiture, Corporate Finance, Crowdfunding, Debt Restructuring, more...
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