what are VC funding rounds?
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Venture capital funds (VC) focus on investing money in new and start-up companies. Most start-ups fail or don’t live up to expectations but a few have the potential to takeoff and grow big so the aim is to spread their capital across many startups and then the few that eventually takeoff will make most of the returns.
New start-ups that need money in order to grow will pitch their ideas and companies to VC funds and if the VC funds like what they see they’ll invest some money in that startup. This can be done in a variety of ways by either buying equity in the startup, loaning them money, or using other financial products.
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