Venture Capital
Venture capital is a form of private equity financing provided by investors (venture capitalists) to early-stage, high-potential startups and small businesses with long-term growth potential. It involves investing capital in exchange for equity ownership, typically in companies that are too risky for traditional bank loans or public markets. Venture capitalists not only provide funding but also offer strategic guidance, mentorship, and access to networks to help startups scale and succeed.
Developers should learn about venture capital when building or working in startups, as it helps them understand the funding lifecycle, investor expectations, and how to align technical decisions with business growth. This knowledge is crucial for founders seeking investment, employees in funded companies, or those interested in startup ecosystems, enabling better communication with investors and strategic planning for product development and scaling.