← GlossaryBusiness

Venture Capital

Venture capital funds invest in early-stage startups with high growth potential, accepting that most will fail in the hope that a few become huge successes. They usually aim to exit within about ten years through a sale or IPO.

Why It Matters

VC money funds growth before profits, which is why so many startups lose money for years.

In India

Venture funds that backed Indian startups in the late 2010s pushed for IPOs in 2025 and 2026 to return money to their own investors.

Related Terms