Venture Capital

Venture capital involves investing in business ventures, focusing on scalable startups with high growth potential. Venture capitalists raise funds from outside investors, invest in companies, and share profits. The structure includes limited and general partners, with investments made over a fund's lifecycle. Revenue is generated through management fees and profit sharing, even if investments lose money. The focus is on series rounds, not seed investments, with a high-risk, high-reward strategy.

What is the primary purpose of venture capital?

How do venture capitalists generate returns for their investors?

What types of businesses do venture capitalists typically invest in?

Describe the structure of a venture capital firm and its investors.

What is meant by 'harvesting the investment' in venture capital?

Explain how venture capital firms make money even if their investments lose value.

What is the significance of management fees in the venture capital industry?