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ArticleVenture Capital: What It Is & Why Use It

Venture Capital: What It Is & Why Use It

What is venture capital?

Venture capital is financing that’s invested in startups and small businesses that are usually high risk, but also have the potential for exponential growth.

The goal of a venture capital investment is a very high return for the venture capital firm, usually in the form of an acquisition of the startup or an IPO.

Why would you want to use venture capital?

Venture capital is a great option for startups that are looking to scale big — and quickly. Because the investments are fairly large, your startup has to be prepared to take that money and grow.

Advantages of working with venture capitalist firms

The biggest advantage of working with venture capital firms is that if your startup goes under — as most do — you’re no...


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