What is Venture Capital?
In the first video to this new series on Venture Capital, Harry defines the roles of Venture Capitalists, and outlines the setup of a VC fund. This includes a mixture of both Limited Partners (LPs) and General Partners (GPs). He further goes on to discuss how each of these stakeholders are paid.
Overview
Venture capitalists provide investment into early, seed-stage companies with high potential for growth with the expectation of huge profits. The venture capitalist realises return for their investors through the differential between the equity they purchase at an early stage of the company’s lifecycle and the price they receive for it upon sale.
Key learning objectives:
What is Venture Capital?
What is the setup of a VC fund?
How do the General Partners of VCs make money?
How do firms split the carried interest between individuals?
Summary
Expert
Harry Davies
Harry Davies has spent the last few years investing in and supporting early-stage technology startups, and has worked with over 200+ startups. He started doing this at Wayra, O2 and Telefonica’s startup accelerator, where they would invest in companies that had a strategic fit with Telefonica, across telecoms, fintech, cyber security, healthcare and more. Harry has since moved to Tech Nation, a UK Government backed body that supports the UK tech sector.
