VC — Venture Capital

Definition: Private investment money deployed into high-growth, high-risk startups in exchange for equity. VCs aim for outsized returns from a small number of huge winners.

Example

a16z, Sequoia, and Benchmark are VC firms. They expect 1 in 10 investments to return the entire fund.

When you'll hear it

VC shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to venture capital — and they expect the room to already know what that means.

FAQs

Should every startup raise VC?

No. VC requires venture-scale outcomes ($100M+ exits). Most profitable businesses are better off bootstrapping or raising debt.

What does VC stand for?

VC stands for Venture Capital.

What does VC mean in business and finance?

Private investment money deployed into high-growth, high-risk startups in exchange for equity. VCs aim for outsized returns from a small number of huge winners.

Where will I hear VC used at work?

VC comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for venture capital, so people assume you already know the term.

Related terms

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