🚀 Ignite your growth: Discover 30+ new tools to get ahead in our new Ecwid Igniter. Learn more →

Ecwid Ecommerce Glossary

Venture Capital

Promo image

What is venture capital?

Venture capital is a type of financing from investors, investment banks, and other financial institutions provided to startups and small businesses that are expected to have long-term growth potential.

Venture capital is usually provided by investors to small businesses with exceptional growth potential. Sometimes venture capital can be provided in the form of technical or managerial expertise.

Venture capitalists are investors that provide their capital to businesses with a long-term growth perspective. They usually get equity in the company, which means they are involved in company decisions.

What are the pros and cons of venture capital?

Advantages of venture capital:

  • A chance to expand the business
  • Guidance, expertise, and consultation from venture capitalists
  • Access to a business network
  • No obligation to repay investors if the company shuts down.

Disadvantages of venture capital:

  • Major company decisions require the consent of venture capitalists
  • Getting venture capital funding is a lengthy and complicated process
  • Investors may not provide all the funds at the same time
  • Venture capital may not be suitable for a company with a business plan that will take more than 3-5 years to provide liquidity.

Ecwid blog

Discover more about ecommerce with Ecwid Blog

Promo image

Start selling online for free

Get started

no credit card required

Search for your term

By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Your Privacy

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer. More information

More information

Strictly Necessary Cookies (Always active)
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third-party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Performance Cookies
These cookies allow us to count visits and traffic sources, so we can measure and improve the performance of our site. They help us know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies, we will not know when you have visited our site.