# Venture Capital

*Startups & Venture Capital — Finicade finance glossary*

Venture capital funds young companies too risky for debt, taking minority equity stakes in exchange for capital and governance rights. The model is built on the power law: most investments return nothing and a small number return the entire fund many times over. That maths is why VCs need companies capable of a hundredfold outcome and are structurally uninterested in businesses that will merely do well.

**Also known as:** VC, venture funding, venture capitalist

**Related terms:** [Angel Investor](https://finicade.com/glossary/angel-investor), [Seed Round](https://finicade.com/glossary/seed-round), [Series A](https://finicade.com/glossary/series-a), [Power Law](https://finicade.com/glossary/power-law), [Limited Partner](https://finicade.com/glossary/limited-partner)

Source: https://finicade.com/glossary/venture-capital