Venture capital and private equity

Venture capital is a subset of private equity.

Venture capital is private equity that is specifically earmarked for funding start-up companies, like yours.

Basically, when an investor invests venture capital into your business, he is basically buying a share of your company.

Equity is what your company is worth, and the more institutional investors that you have, the less equity your company holds.

The main case with venture capitalists is that when they invest money in your company, they want to hold a certain amount of your company’s equity, which is measured in shares.

Many venture capitalists will also ask to have a seat on your board of directors.