Venture Capital (VC)

A VC fund is a type of investor that typically invests in private, early-stage companies. Usually, VC firms invest in companies that they think will grow very quickly in the near future due to, for example, innovative technology the company’s developing. VC funds usually take an ownership stake in the companies in which they invest (rather than lending them money) and typically hope to sell that stake at a much higher valuation after five to ten years.