Definition
Money from professional investors betting billions annually that 1% of startups will become unicorns. A mostly efficient system for transferring wealth from LPs to founders (and from founders to VCs).
Example Usage
We're raising Series A from Silicon Valley VCs, who will now legally own my soul until exit.
Origin
Emerged as formal industry post-WWII, professionalized in the 1970s
Fun Fact
VC returns follow a 'power law' distribution where the top 1% of companies generate 99% of returns, making VC investing wildly inefficient
Source: Standard venture capital industry terminology
Related Terms
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See “Venture Capital (VC)” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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