Portfolio Company
A Portfolio Company is a business entity in which a venture capital firm, private equity firm, or other investment entity holds an equity stake. These companies form part of the investor’s investment portfolio and are actively managed, advised, or strategically guided by the investment firm.
Portfolio companies can be in various stages of growth, from seed-stage startups to established enterprises. The success of these companies contributes to the overall performance of the fund or firm. Regular performance tracking, board participation, and follow-on investments are often part of the relationship between the investor and the portfolio company.