Investor & fund types · Core

Venture capital

Also called: VC

ELI5

Investment funds backing private companies expected to grow rapidly.

Used in conversation

“Venture capital is suitable only when the return profile fits.”

Definition

Equity investment in high-growth private companies, typically through professionally managed funds.

Here “Venture capital” means: Equity investment in high-growth private companies, typically through professionally managed funds.

Pitch context

You will see “Venture capital” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches investor & fund types.

Why it matters: In investor & fund types, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 6

Direct term-level sources and supporting source families.