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?