All terms

Venture Capital

Funding provided by investors to high-growth startups.

QUICK ANSWER

Venture Capital is financing provided by investors to startups with high growth potential in exchange for equity.

In depth

Venture Capital is a form of private equity investment where firms or funds invest in early-stage and high-growth startups. In exchange for capital, investors receive equity ownership and often play an active role in guiding the company. Venture capital is typically deployed in stages such as seed, Series A, and beyond. Startups use this funding to scale operations, hire talent, and expand into new markets. While it enables rapid growth, it also involves dilution and increased expectations for performance.