Venture Capitalist (VC)

A Venture Capitalist (VC) is an investor or a firm that provides capital to startup companies and small businesses with perceived long-term growth potential, in exchange for an equity stake. Unlike traditional lenders who offer debt, VCs invest equity, meaning they become part-owners of the company and share in its risks and rewards. They typically invest in early-stage, high-risk, high-reward ventures that often struggle to secure funding from conventional sources like banks due to their lack of collateral, operating history, or predictable cash flow.