Venture Capital

Also called VC

Money that professional funds invest into high-growth startups in exchange for equity, pooled from limited partners. VCs bet on a few big winners to return the whole fund.

Why it matters

VC is fuel for companies chasing very large outcomes fast, but it comes with the expectation of venture-scale returns. It fits some businesses and quietly wrecks others, so knowing whether you are a fit matters before you pitch.

For example

A hyper-growth startup raises venture capital because it needs 40 crore to grow fast now, accepting the pressure to deliver a venture-scale outcome.

Go deeper

A Founder's Guide to Venture Capital and Startup Fundraising Tomasz Tunguz · guide A VC's own plain-language guide to how the machine works, funds, LPs, returns, so you understand the incentives on the other side of the table. Open tomtunguz.com →

Fundraising Masterclass for Founders Prime Venture Partners Podcast · podcast A leading early-stage Indian VC answering, at length, the fundraising questions founders actually have, from an India POV. Listen on Spotify open.spotify.com →

Related terms

Also in Starting Up

See how founders actually handle this on Raising your first round, part of the Starting Up hub.

eChai Partner Brands The partnership →