August 6, 2019

A venture capital (VC) fund invests money, its network and other resources in young companies that are in the early stages of business development.

There are different ways to achieve a profitable exit. It can a direct sale or, if the company is large enough, an IPO.

Besides the well-known FFF and VC investors, business angels are considered as start-up financiers as well. They not only bring money, but also know-how and their network.

When a VC fund invests in a start-up, it rarely buys existing shares. Rather, new shares are issued for new money.