Venture Capital (VC) denotes the financing provided by investors to startups and businesses based on the expectations that such businesses have long-term growth potential. Venture capitalists typically focus on early-stage businesses seeking financing for the first time. VC firms typically use the venture capital valuation method to estimate the fair market value of businesses they seek to acquire or invest in. Under this method, business entities are valued based on their current stage of financing and a typical rate of return required by investors interested in investing in businesses at that stage.