Venture capital is a significant driver of growth in Silicon Valley. Venture capital firms provide funding to early-stage, high-potential startups in exchange for equity. These firms often offer more than just capital; they bring valuable expertise, mentorship, and networking opportunities. The typical venture capital process includes several stages:
Seed Funding: The initial capital provided to help a startup develop its product and business model. Series A, B, C Funding: Subsequent rounds of funding aimed at scaling the business, expanding operations, and capturing market share. Exit Strategy: The ultimate goal for venture capitalists is to achieve a return on investment through an initial public offering (IPO) or acquisition.