Essentially, the purpose of venture capital is to give startups the funding they need to execute their visions and reach a mass audience.
Traditionally, venture capital is reserved for high risk, high reward, early-stage startups. A VC will provide money, as well as strategic advising services in order to bring a company to IPO or an acquisition event.
The trend we’re seeing today is that startups need less and less money to build out a first version and find product / market fit. This in turn leads to companies raising smaller and smaller sized rounds.
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