PE Glossary
Venture Capital (VC)
Venture Capital · A PE strategy focused on early-stage and high-growth companies. VC funds typically take minority stakes and accept higher failure rates in exchange for outsized returns from successful investments.
Example
A venture fund invests €5M for 15% of a Series A software startup with a €20M post-money valuation. The fund expects most early-stage investments to fail or break even, but a single 50x exit on one of 25 portfolio companies can return the entire fund.
Related terms
Put Venture Capital in context
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