Who are venture capitalists (VCs)?

Venture capitalists (VCs) are primarily investors who provide funding to new and emerging businesses, typically in exchange for equity in the company. They specialize in managing investment capital with a focus on high-potential startups that may require significant resources to grow and scale their operations. VCs often play an active role in guiding the startups they invest in, providing not only capital but also expertise, industry connections, and strategic support to help these businesses succeed.

This option accurately captures the essence of venture capitalists as investors who directly engage with new ventures, aiming for substantial returns on their investments as the startups mature and potentially become profitable or are sold or go public. Their involvement is crucial in sectors such as technology, biotechnology, and other innovative industries where access to capital can be challenging for early-stage companies.