Beyond the buzzwords, this archive defines VC as a specific financial product: 'Risk Capital' for 'J-Curve' assets. It explains that VCs are not looking for steady dividends (like a bank), but for 'Asymmetric Upside' (100x returns). The text clarifies the distinction between Pre-Seed (idea), Series A (product-market fit), and Growth (scale), and why capital becomes cheaper (lower cost of equity) as the startup de-risks. It also covers the '2 and 20' fee structure that drives GP behavior.

Founders often pitch 'Small Business' ideas to VCs. This archive explains why that is a category error. Unless your business has the potential to return the *entire fund*, it is not venture-backable. Understanding this math saves you from pitching a lifestyle business to an asset manager looking for moonshots.