Venture capital (VC) is financial capital provided to high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries. The typical venture capital investment occurs after the seed funding round as growth funding round. Venture capital is a subset of private equity. Therefore, all venture capital is private equity, but not all private equity is venture capital.

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