Venture Capitalist (VC)
Venture Capital (VC) is a form of investment focusing on start-ups or small businesses with strong growth prospects, anticipating considerable returns or share stakes in the invested company.
Venture capitalists bear high financial risks, yet they fuel start-ups exhibiting significant potential for success or high growth. The capital injected by these investors generally encompasses the associated risks.
Venture capitalists infuse funds into selected start-ups in return for shares, equity, or revenue generated by the company. Renowned businesses like Facebook, Uber, Airbnb, Paypal, and Xiaomi have benefited from venture capital.
Venture investments typically follow a partnership model. Investors become crucial stakeholders in the funded start-ups, participating in decision-making and potentially becoming shareholders or partners. Venture capitalists may liquidate their holdings, paving the way for fresh investment.