Category:VC

A venture capitalist (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake.

Venture capital funds are composed of a pool of investors wishing to make a considerable amount of money quickly. Fund managers send out a prospectus to potential investors inviting them to participate. In essence, a prospectus is a document selling them on the investment fund.

VC fund managers spend considerable time reviewing thousands of projects to determine growth potential. Although they're prudent investors, venture capital firms like to spread their bets. In this manner, they don't risk putting all their money in one basket.

Sources:

https://cointelegraph.com/funding-for-beginners/venture-capital-financing-a-beginners-guide-to-vc-funding-in-the-crypto-space

https://www.investopedia.com/terms/v/venturecapitalist.asp#:~:text=our%20editorial%20policies-,What%20Is%20a%20Venture%20Capitalist%20(VC)%3F,have%20access%20to%20equities%20markets.