How does Venture Capital work?
1. High-risk Investing 📊
VCs invest in early-stage startups that are too risky for traditional bank loans. Startups typically can’t acquire conventional funding.
2. Funding for Equity 🏢
VCs buy equity in the company, instead of lending money. They own a share of the business and stand to profit if the company succeeds.
3. Early-stage focus 🔎
Venture capital is deployed in various stages, from seed funding to subsequent growth stages. Each stage is designed to help the company reach the next milestone, whether it’s developing a product, or scaling operations.
For example: Seed, Series A, Series B, etc.
4. Exit Strategy 📈
VCs invest with the aim of exiting the startup with a significant return. Common exit strategies include M&A or Initial Public Offering (IPO).
Careers in Finance
If you’re interested in Tech and Finance roles, join our Job Board
