Venture Capital

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What It Means

Venture Capital, commonly referred to by it’s initials “VC”, is a sub-class of Private Equity that specializes in investing in startups and early stage companies. Venture Capital is considered a very risky investment class and VCs know that many, if not most, of their portfolio companies may fail to generate positive returns.

Why It’s Important

Venture Capital is a very active segment of the Private Equity industry, however, they do not typically participate in outright Acquisitions, preferring instead to make minority investments in several companies that have high growth potential.. As such, VC firms are not likely candidates to be Buyers.

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