Venture Capital 101: What It Is, How It Works & Why the Wealthy Love It
Description
Venture capital is the “high-risk, high-reward” investment strategy the wealthy use to get in early on companies before they become billion-dollar unicorns like Airbnb, Uber, SpaceX, or Canva. 🚀
In Episode 21 of What the Wealthy Do, host Stephanie Dorsey breaks down how venture capital really works, how investors make money, the stages of startup funding, and why this asset class is one of the most powerful tools in private markets.
If you’ve ever wondered:
How do the wealthy invest in startups?
What is venture capital?
Why do VCs make so much money when a company “hits”?
How risky is startup investing?
How can YOU start learning this strategy?
…this episode gives you a full, simple, beginner-friendly breakdown.
💡 In this episode you’ll learn:
• What venture capital (VC) actually is
• The stages: Pre-Seed, Seed, Series A, B, C & later rounds
• How VCs make money (management fees + carried interest) • Why only 20% of startups hit — and why wealthy investors still do it • How venture funds pick companies
• How investors get paid when a company goes public or gets acquired • How regular people can start learning about VC
• The truth about the real risks in startup investing
If you're building wealth or looking to diversify beyond stocks and real estate, this episode gives you the blueprint the wealthy already use.
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👉 Share this with a friend who wants to level up their wealth-building journey.





