What is Venture Capital? How does it work? #shorts

In this video I explain Startup Funding.
Who is a Venture Capitalist?
A venture capitalist (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake. This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets.

How does VCs raise funds?
They raise fund from wealthy individuals, insurance companies, pension funds, foundations, and corporate pension funds. Such partners are called Limited Partners.

How do we startups, check our eligibility for Venture capital funding?
If you do not have any experience, you must have a product that is working and performing well.
Eg. Mark Zuckerberg with Facebook
If you have experience, have an idea and enough connections, you may get funded.
Eg. Jack Dorsey from Twitter, with an idea of Square
If you have no experience, have just an idea and no product, then you may NOT get funded.

Things to know before considering Fund raising
1.There is no free lunch! You may lose freedom
2.Get ready to work under pressure from VC partners
3.Your business may have to run without you, while you are fund raising, so have the system in place first!
4.Learn more about Revenue based financing which is an upcoming trend.

#startupvlog #startupjourney #venturecapital #startupbasics #startupmalayalam