A venture capital (VC) fund invests money, its network and other resources in young companies that are in the early stages of business development.
August 6, 2019
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.