Venture capital (VC)


    Venture capitalVenture capital (VC) is financial capital provided to start-up companies. It comes either from individual investors or specialised venture capital funds.

    The idea behind venture capital is to gain equity in the start-up companies. Often, the start-ups pursue new ideas, such as in the Internet or in biotechnology.

    Venture capital is a subset of private equity. Therefore, all venture capital is private equity, but not all private equity is venture capital.

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    The typical venture capital investment occurs after the seed funding round as growth funding round (also referred to as Series A round). The idea is to generate a return through an eventual realization event, such as an IPO or trade sale of the company.

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