What is Venture Capital?
Investment money given to high-growth startups in exchange for equity (ownership).
Venture capital (VC) is money from professional investors who buy a chunk of your company hoping it becomes worth 10–100x. It's rocket fuel for businesses that need to grow fast and big before turning a profit.
The deal: you trade ownership and control for capital and connections. VCs need huge exits (acquisitions or IPOs) to make their model work, which means they'll push for aggressive growth — great if that's your goal, painful if it isn't.
Most businesses are not VC-suitable, and that's fine. VC is a specific tool for a specific kind of swing-for-the-fences company.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.