What is venture capital? Venture capital (VC) is a type of private equity used to support startups and early-stage companies with the potential for substantial and rapid growth. Venture firms raise funds from limited partners (LPs) to invest in these high-potential business, often providing not just financial backing but also technical support and managerial expertise. In return for their investment, VC firms gain ownership stakes in the companies they support. Venture capital is typically introduced at various stages of a company’s development, such as seed and early funding rounds, and plays a critical role in driving innovation and expansion across industries.
