← Back to Academy

How Venture Capital Actually Works — From Pitch to Exit

Beginner Investing • 6 min

Venture capital funds are built around an assumption that would sound reckless in almost any other business: most of their investments will fail entirely. A typical VC fund invests in a portfolio of early-stage startups, expecting a meaningful share to go to zero, several more to return modest amounts, and a small handful — often just one or two — to become huge enough to cover everyone else's losses and still…

2 of 2 free lessons used

Create a free account to keep reading

You have read your 2 free lessons. Making an account is free and gives you 2 more straight away — plus your progress, streak and quiz scores saved as you go.

Learning through your school? Join your class — school students get everything, at no personal cost.