Money 101: What is venture capital? | Tech News for College Students

You’ve probably heard the term venture capital thrown around. But what exactly does it mean? What is it and why do entrepreneurs want it so badly?

In the world of Silicon Valley — practically the startup capital of the universe — entrepreneurs and idealists live and breathe “VC.” That’s because venture capital is the cash that launches startups.

Here’s how it works, basically.

Say you’re the founder of a startup. It’s likely that you will need external funding to start, then grow, your company. You need an office, you probably need employees, you need computers. The process of capturing funding just to get your product released is tricky. You have to convince people who have a lot of money that your idea, product or invention is worth investing in — because it’s going to make them even more money.

What is venture capital?

Simply put, capital is money and other…

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