Concept · Fundraising and equity

Venture capital

Also called: VC, VCs, venture capitalist, venture fund, venture

Money that professional investment firms put into young companies in exchange for equity. These firms expect many of their bets to fail, so they look for companies that could grow very large.

For example: A venture capital firm invests in a delivery startup and receives shares. The firm only makes money if those shares become worth much more later.

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This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.

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