Intro to Venture Capital

Justin Seghers
7 min readJul 10, 2023

Venture Capital (VC) is an exciting and ever-growing field responsible for fuelling the growth of some of the world’s most innovative and successful companies. From B2B SaaS startups to education and biotech firms, venture capital investors are always on the lookout for promising new ventures to invest in.

Whether you’re an entrepreneur looking to launch a new business or an investor interested in supporting emerging companies, venture capital is a topic you’ll want to explore in depth. This blog post will cover the basics of venture capital, including what it is, how it works, and who the key stakeholders are.

Photo by Damir Kopezhanov on Unsplash

What is VC?

Venture capital is a type of private equity financing provided to early-stage, high-potential start-ups to fund growth initiatives such as product development, scaling operations and marketing. Venture capitalists provide this financing in exchange for equity (percent ownership) in a start-up — with the expectation of earning a substantial return on investment (ROI) in the future through an “exit”. More on that later.

Airbnb, Deliveroo, Google, and Dropbox are just a few noteworthy examples of successful companies that were backed by VCs in their early days.

Where does the VC money come from?

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