Venture Capital Definition
In simple terms, venture capital is money that is invested in a company or startup with the expectation of earning a return through the eventual sale of the company or IPO.
Venture capitalists are typically high net worth individuals or firms who are willing to take on more risk than traditional investors such as banks or insurance companies. In exchange for this higher risk, venture capitalists expect to earn a higher return on their investment.
VCs typically invest in companies that are in their early stages of development and have high growth potential. They will work closely with the management team of the company to help them scale and grow the business.
The goal of VCs is to make a large return on their investment when the company is eventually sold or goes public.
