Updated on March 9, 2023
A Venture Capitalist or ‘VC’ is a private equity investor who identifies and provides capital to companies in exchange for an equity stake. A Venture Capitalist can be an individual or a firm which invests in early-stage companies with high-growth potential.
The companies can be startups or small companies with potential for expansion but do not have other sources for funding or are not yet ready for accessing equity markets. A VC invests in these companies and may also work with them.
Venture Capitalist Explained
a) A Venture capital firm can source money for its own operations from big individual investors, institutions or corporates etc.
b) A VC aims to invest in a company during its growing stage for maximising its returns and not always in startups only.
c) Once the company becomes successful, VCs may move out through selling stake to others or through a public issue.
d) A VC might invest in several companies at a time.