VC Full Form | Full Form of VC
VC Full Form - Venture Capital
- Venture capital (VC) may be a sort of private equity financing that's provided by venture capital firms or funds to startups, early-stage, and emerging companies that are deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue, scale of operations, etc).
- Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the danger of financing risky start-ups within the hopes that a number of the firms they support will become successful.
- Because startups face high uncertainty, VC investments have high rates of failure. The start-ups are usually supported an innovative technology or business model and that they are usually from the technology industries, like information technology (IT), clean technology or biotechnology.
- A financing diagram illustrating how start-up companies are typically financed. First, the new firm seeks out "seed capital" and funding from "angel investors" and accelerators.
- Then, if the firm can survive through the "valley of death"-the period where the firm is trying to develop on a "shoestring" budget-the firm can seek risk capital financing.
- The typical venture capital investment occurs after an initial "seed funding" round. The first round of institutional risk capital to fund growth is named the Series A round.
- Venture capitalists provide this financing within the interest of generating a return through an eventual "exit" event, like the corporate selling shares to the general public for the primary time in an initial public offering (IPO) or doing a merger and acquisition (also referred to as a "trade sale") of the corporate. Alternatively, an exit may happen via the private equity secondary market.
- In addition to angel investing, equity crowd funding and other seed funding options, venture capital is attractive for brand spanking new companies with limited operating history that are too small to boost capital within the public markets and haven't reached the purpose where they're ready to secure a loan or complete a debt offering.
- In exchange for the high risk that venture capitalists assume by investing in smaller and early-stage companies, venture capitalists usually get significant control over company decisions, additionally to a big portion of the companies' ownership (and consequently value). Start-ups like Uber , Airbnb , Flipkart , Xiaomi & Didi Chuxing are highly valued startups, commonly referred to as "Unicorns", where venture capitalists contribute more than financing to those early-stage firms; They also often provide strategic advice to the firm's executives on its business model and marketing strategies.
- Venture capital is additionally a way in which the private and public sectors can construct an establishment that systematically creates business networks for the new firms and industries in order that they will progress and develop.
- This institution helps identify promising new firms and supply them with finance, technical expertise, mentoring, talent acquisition, strategic partnership, marketing "know-how", and business models.
- Once integrated into the business network, these firms are more likely to succeed, as they become "nodes" within the search networks for designing and building products in their domain.
- However, venture capitalists' decisions are often biased, exhibiting as an example overconfidence and illusion of control, very similar to entrepreneurial decisions generally.
VC Full Form - Version Control
- Version Control (VC), also known as Revision Control, may be a system that records changes to a file or set of files over time in order that you'll recall specific versions later.