Venture Capital Fund
A Venture Capital fund, also known as a VC, is an investment fund whose investors are called LPs (limited partners) and whose management is led by a general partner (GP) tasked with investing in startups with a specific profile.
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What is a Venture Capital Fund?
A Venture Capital fund also known as a VC, is an investment fund whose investors are called LPs (limited partners) and whose management is led by a general partner (GP) tasked with investing in startups with a specific profile.
In turn, the GP is made up of the fund managers, who are experts in the startup ecosystem and design an investment strategy to identify investment opportunities.
How do VCs make money?
Venture Capital funds make money by investing in early-stage startups, helping them grow, and selling their stake at a higher price. Typically, fund managers earn a percentage of the profits they generate for investors. In addition, LPs have limited participation in investment decisions, with managers making those decisions.
