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.
- U.S. Securities and Exchange Commission — Accredited InvestorsDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsSupporting source family · institutional · checked 2026-08-16
- Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16