Venture capital (VC) is a form of private equity financing provided to startup companies and small businesses with high growth potential. Investors, typically organised in firms, provide capital in exchange for equity and often take an active role in management and strategy.

VC is high-risk, high-reward, and is used to fund product development, market expansion, and scaling. It is common in technology, biotech, and clean energy. Stages include seed, early-stage, and later-stage rounds. Successful exits include IPOs and acquisitions.

Key points

• Financing for high-growth startups
• Equity investment, active involvement
• High risk, high reward
• Common in tech and biotech