Venture Capitalist Definition Business - Venture Capital Explained

Venture Capital Definition:
Venture capital ("VC") is a type of private equity financing that is provided by professional investors to small and medium-sized enterprises that are deemed to have high growth potential.

Venture capital firms or funds invest in startups and small businesses that are in the early stages of operation, and they typically provide financing in exchange for an ownership stake in the company.

The goal of venture capital is to provide the capital, expertise, and support that young companies need to grow and become successful.

Venture capital firms typically focus on high-risk, high-reward investments, and they may provide additional support to the companies they invest in, such as through strategic planning and mentorship.

What is the goal of venture capital funds?
The actual "capital" in venture capital funds is provided by limited partners (themselves "investors" but in the fund itself). General partners ("GPs") who work for and manage the fund typically make investment decisions, while the LPs are silent investors who expect a significant return on their investment via a pool of investments.

The primary goal of venture capital is to deliver a significant return on investment for limited partners (and general partners) in the fund. 

Looking for venture capital investors?
Check-out our detailed investor list with details on 300+ UK venture capital and angel syndicate investors, including their investment criteria.

Remember, most VC funds will expect to see a pitch deck. You can grab a template here, or talk to our pitch deck creation experts.