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What is venture capital ?

Venture capital fuels fast-growing startups. In exchange for equity, VCs bet on your success β€” from seed to IPO. High risk, high reward, huge potential.

20 May 25

The fuel that powers startups πŸš€

Venture capital (VC) is equity financing aimed at high-growth-potential startups. Unlike bank loans, it doesn’t have to be repaid β€” investors receive shares in the company in exchange for the risk they take.

πŸ‘‰ In short: VCs buy a stake in your company, betting that it’ll be worth much more tomorrow.

πŸš– A real-life example

Three engineers are building autonomous flying taxis.
They need €50 million to design, hire, and get licenses.
No bank will lend them that much. But a VC fund might β€” in exchange for equity.Β 

πŸš€ How venture capital works

VC follows a step-by-step model as the startup evolves:

🌱 1. Seed β€” Planting the idea

Prototype, vision, small team.
Initial funds come from business angels or early-stage VC funds.
In return: a share of the company.
πŸ“Œ Example: Peter Thiel invested $500,000 in Facebook in its early days.

πŸš€ 2. Series A β€” Validating the model

The product works, first users are onboard.
VCs invest millions to boost growth.
Goal: structure the offer and generate revenue.
πŸ“Œ Example: Airbnb raised $7.2 million in Series A from Sequoia Capital (2011).

πŸš€πŸš€ 3. Series B, C & beyond β€” Scaling up‍

The company makes revenue and expands to new markets.
Larger amounts are raised: tens or hundreds of millions.
Goal: dominate the market.
πŸ“Œ Example: Uber raised $1 million in Series C (2015) to go global.

🎯 4. Exit β€” Reaping the rewards
VCs aim to exit with a profit:

🎲 Why do VCs take the risk ?‍

‍Because the upside can be huge :
Only 1 in 10 startups truly succeeds.
But one success can return 100x the initial investment.
πŸ“Œ Example: Amazon, Google, Facebook, and Tesla became giants. But Theranos and WeWork, despite raising billions, failed.

πŸ‘₯ Who are the players in VC?

πŸ“Œ In conclusion‍

Venture capital is a growth accelerator for bold entrepreneurs.
But money alone isn’t enough: you need a vision, a great product, solid execution… and a bit of luck.

With LowInvestor, startup investing isn’t just for experts or big funds anymore β€” it’s for everyone.

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