Venture Capital: The Basics
What is Venture Capital?
- Startups need to raise money from VC firms to operate and grow their companies. In return, VC firms own equity in the company
- VC’s invest in the private market in companies at their earliest stages
- VC is a form of private equity
- A VC takes on an active, not passive, roll
- Primary goal is to max returns by exits
Why is VC interesting?
- Adjacent to entrepreneurship, private equity
- Learn about a diverse group of industries and companies
- Talk to people and meet talented founders
- Evaluate startups and place bets on their success
- Freedom-- you get what you make of it
What does a VC actually do?
- Sourcing and Screening
- Due Diligence: Data rooms, calls (to everyone!)
- Portfolio Management
- Company Building: Attract talent, introduce investors, etc.
- Fundraising