Private Equity & VCBeginner

Venture Capital

VC

Funding for young, high-growth start-ups in exchange for equity.

Detailed explanation

VCs accept that many investments fail, expecting a few big winners to return the fund. Funding happens in rounds: seed, Series A, B, C and beyond.

Why it matters

VC funds most of India's start-up ecosystem.

Key points

  • High risk, high potential return.
  • Staged funding rounds.
  • Returns follow a power law.

Related terms

More in Private Equity & VC

Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.