Venture Capital

“Venture capital (VC) is a form of private equity that funds startups and early-stage emerging companies with little to no operating history but significant potential for growth. Fledgling companies sell ownership stakes to venture capital funds in return for financing, technical support and managerial expertise.

VC investors typically participate in management, and help the young company’s executives make decisions to drive growth [...].

Portfolio companies get access to the VC fund’s network of partners and experts. Moreover, they can depend on the VC firm for assistance when they try to raise more money in the future.

Venture capital is an alternative investment that’s typically only available to institutional and accredited investors. Pension funds, big financial institutions, high-net-worth investors [...] and wealth managers typically invest in VC funds".

Source: https://www.forbes.com/advisor/investing/venture-capital/

By: Rebecca Baldridge and Benjamin Curry, for Forbes Advisor