Which VC Sectors Generate the Best ROI? 2025 Data on IRR by Industry
IT, healthcare, and industrials = 85% of U.S. VC invested capital (Cambridge Associates). AI dominates deal value at 65.4%. Here's what actually outperforms.
Venture capital has its own vocabulary, incentives, and mechanics. Our VC explainers break down complex topics — from liquidation preferences to fund economics — so founders and analysts can make better decisions without wading through jargon.
Start with the explainers below to build a stronger foundation in venture capital.
IT, healthcare, and industrials = 85% of U.S. VC invested capital (Cambridge Associates). AI dominates deal value at 65.4%. Here's what actually outperforms.
The complete 2026 guide to startup funding rounds — typical round sizes, valuations, metrics expected, and what each round is really for.
Secondary transactions let existing shareholders sell shares without a company exit. Here's how tender offers, direct secondaries, and continuation funds actually work.
PMF is the moment customers pull your product from you faster than you can sell it. Here's how to measure it, using retention, NPS, and the 'Sean Ellis test.'
Pro-rata rights let investors maintain ownership by participating in future rounds. Here's how pro-rata mechanics, super pro-rata, and fund reserves actually work.
NYC hosts the world's largest PE firms. Blackstone alone manages $1T+; KKR, Apollo, Carlyle, Warburg, General Atlantic add trillions more. Here's the ecosystem.