Venture capital is oftentimes a glorified funding option in Silicon Valley and the startup world. In short, it is a funding option that allows VC funds to buy equity in a startup. In turn, a startup is giving up a percentage of their ownership with the hopes of growing their valuation and creating a successful exit for everyone on the cap table.

To better understand the topic, find out more about kinds of venture capital funding, when it's used, potential benefits and pitfalls, the origins, and what it's like to work for a venture-backed business.

Understanding how venture capital works is an important step to determining if venture capital is right for your business. If you believe venture capital is right for your business, let us help. Find investors using Visible Connect, our free investor database, to kick off your fundraise.