Venture Capitalist

A Venture Capitalist (VC) is an individual or firm that provides capital to startups and early-stage businesses with high growth potential in exchange for equity ownership. Unlike traditional lenders, VCs take on higher risk, as these businesses are often unproven and lack collateral. In return, they expect significant returns through the company’s growth or eventual exit, such as an IPO or acquisition.

Venture capitalists not only offer financial support but also provide strategic guidance, mentorship, and industry connections to help businesses scale quickly. They usually invest through venture capital funds and focus on innovative sectors like technology, healthcare, and fintech.

While VCs can fuel rapid growth, they also gain decision-making power in the company due to their equity stake.

Example: Sequoia Capital, a global VC firm, invested early in companies like Byju’s and Zomato, helping them become major players in the Indian startup ecosystem.