Venture capital
Venture capital is professional equity capital for high-growth start-ups. VC funds invest larger sums – but in return they expect ambitious growth and a later exit.
How venture capital works
VC funds raise capital from investors and take stakes in young companies with high growth potential. They invest in rounds (seed, Series A, B …) and count on a few big successes making up for the losses on many investments.
Who VC suits
Venture capital is suitable for scalable, often technology-driven models with a large market. If you’re not aiming for extreme growth, other sources usually serve you better – VC comes with heavy pressure to grow.
What VC investors expect
VCs examine team, market, traction and scalability closely. They expect solid figures, a clear growth plan and a realistic path to an exit. The requirements increase with every round.
Frequently asked questions
What is the difference between a business angel and VC?
Business angels invest their own money early and in smaller amounts. VC funds invest other people’s capital, usually larger sums in later phases, with higher growth expectations.
Do I definitely need growth for VC?
Yes. The VC model only works with companies that scale strongly. For moderate growth, loans, funding or angels are the better choice.
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