Venture Capital (VC) is when professional investors provide money to startups to help fund their operations and growth 🚀

Some investors set up VC funds that – just like private equity funds and hedge funds – pool money from other investors specifically to invest in startups 💰

VC investors take on a ton of risk: after all, 90% of startups fail! 😰

But they also have the potential for MASSIVE rewards if the startup becomes successful 🤑

This is because in exchange for their money, VC investors get a slice of ownership in the company.

So if the company grows and becomes more valuable, so does the VC's investment! 📈

Some of the biggest companies today, like Nvidia Google and Meta all received venture capital early on, and the VCs that invested in them made billions of dollars! 🌟

Without VC, we might not have many of the products and services we use every day! 😲

But why do startups need to take money from VCs?

Well, it’s because most early-stage startups are not yet profitable – they need to hire employees, pay for servers and offices, run marketing campaigns and more!

So in order to fund the costs of running the business, especially when it’s just starting out and may not even have any revenue, entrepreneurs turn to VCs to help out 😎