Venture Capital
Fueling innovation by investing in startups with bold visions
Venture capital funds invest in early-stage companies that have the
potential to grow rapidly.
How Venture Capital Works
VC firms:
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Raise a fund
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Invest in multiple startups
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Provide guidance, networks, and resources
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Exit through acquisition or IPO
Because many startups fail, VC depends on:
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A few “home runs”
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Portfolio diversification
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Long-term holding periods
How Returns Are Generated
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Equity appreciation when the company is acquired or goes public
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Secondary sales of shares
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Occasional dividends (rare in early-stage companies)
Stages of Venture Investing
1. Pre-Seed & Seed
Very early.
Often used for:
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Prototype development
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Early hires
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Market testing
Risk: Very high
Potential reward: Transformational
2. Early Stage (Series A/B)
Companies with:
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A real product
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Growing customer base
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Revenue traction
Goal: Scale the business
3. Growth Stage (Series C/D/E)
Larger, more established startups expanding:
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Internationally
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Into new product lines
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Toward IPO readiness
4. Late Stage / Pre-IPO
Companies preparing for:
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Public listing
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Strategic acquisition
Generally lower risk, more predictable growth.
5. Venture Debt
Loans to startups that want to grow without raising dilutive equity.
Includes:
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Warrants
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Interest payments
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Higher interest than traditional loans
VC is fundamentally about supporting innovation and shaping the future.