What is Venture Capital?

Venture capital is a common element of the capital stack for early-stage businesses that need large amounts of money to get going. It is often used when a company has to invest large sums of money to build a complex product or target a broad customer base. However, equity financing involves selling a portion of a company's equity in return for capital, resulting in dilution and control of different elements and directions.

• No obligation to repay money acquired or interest charges

• Dilution and potential high costs of capital

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