Venture Capital
Professionally managed funds investing other people's money into high-growth startups.
Venture capital firms raise money from limited partners — pension funds, endowments, family offices — and invest it into startups on their behalf. That structure shapes their behaviour.
Funds have a life, usually ten years, and must return capital within it. This is why VCs need outcomes large enough to return a whole fund, and why a business that will comfortably reach $10M in revenue may still not be venture-fundable.
Understanding the fund's size and stage tells you whether your round fits. A $500M fund cannot meaningfully deploy $500,000, however much they like the company.