Guide

Venture capital

Introduction

Venture capital (VC) funding is a form of private equity investment, where a business obtains long-term funding in exchange for a share of its equity.

VC funding is mainly sought by start-ups or new businesses with high growth potential. Companies can also use it to expand, fund management buy-outs or buy-ins, or develop new products.

VC investments are made by companies, drawing on private equity funds set up by large investment institutions and are generally on a larger scale - typically over £250,000.

You may find that VC funding is not suitable for your business. If so, there is an alternative type of private equity investment - business angels.  This guide provides an overview of VC private equity funding for businesses, and outlines strategies for securing it.