Venture Capital

Venture Capital Basics

What It Is: Institutional venture capital comes from professionally managed funds that have $25 million to more than $1 billion to invest in emerging growth companies. Venture capital focuses on capital investments in private, young, fast-growing companies.

Appropriate for: High-growth, high-potential companies that are capable of becoming market leaders, and being profitable in five to eight years.

Best Use: Varied. From financing product development and commercializing promising technologies to building durable well-run businesses.

Cost: Expensive. Institutional venture capitalists purchase significant equity in a business. The earlier the investment stage, the more equity is required to persuade an institutional venture capitalist to invest. The range of funds typically available is $500,000 to more than $30 million.

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News and Articles About Venture Capital

What It's Like to Launch Your Own VC Firm

What It's Like to Launch Your Own VC Firm

The best venture investors may be the ones who can currently empathize with your status as a startup.
Dress Well and Leave the 'Umms' at Home -- 5 Ways to Ace an Investor Pitch

Dress Well and Leave the 'Umms' at Home -- 5 Ways to Ace an Investor Pitch

There’s one thing worse than watching an entrepreneur crumble under a fatal barrage of questions.
7 Tips on Raising Money From a Guy Who Is Raising

7 Tips on Raising Money From a Guy Who Is Raising

There is nothing "fun" about fundraising. I am going through it now...
Who Should Be Deemed 'Sophisticated' Enough to Be an Investor?

Who Should Be Deemed 'Sophisticated' Enough to Be an Investor?

Regulators argue that the income requirements for accredited investors -- which were set in 1982 -- are in desperate need of an adjustment. Entrepreneurs and investors, meanwhile, don’t want to see access to capital limited.
10 Lessons to Learn From Failing Startups (Including My Own)

10 Lessons to Learn From Failing Startups (Including My Own)

A serial entrepreneur provides valuable insights gleaned from the trenches.
The 25 Most Active Corporate VCs

The 25 Most Active Corporate VCs

Can you guess which venture capital firms made the list? A look at the expanding role of corporate VCs in the startup economy.
How to Evaluate Your Startup Like a VC

How to Evaluate Your Startup Like a VC

The are six factors that investors will focus on when evaluating your business. Know them by heart.
How Minority Founders Overcame the Challenge of Finding VC Investors

How Minority Founders Overcame the Challenge of Finding VC Investors

Personal networks are important for founders looking for venture capital. Entrepreneurs from underrepresented groups have particular challenges.
Google Ventures Launches $100 Million Startup Fund in Europe

Google Ventures Launches $100 Million Startup Fund in Europe

The startup investment arm of the digital giant is aiming to put support into new European companies.
What a VC Insider Learned in the Past 10 Years About Startup Funding

What a VC Insider Learned in the Past 10 Years About Startup Funding

Our expert Bo Yaghmaie explains how entrepreneurs should prepare for the worst.
Walk Into Your Pictures: 3-D Camera Maker Raises $16 Million in VC Funding

Walk Into Your Pictures: 3-D Camera Maker Raises $16 Million in VC Funding

Mountain View, Calif.-based Matterport develops technology that allow users to capture images and turn them into 3-D models that can be explored. A current application is providing a way for real-estate listings to be walked through.
7 Ways to Leverage an App's Press Coverage with Investors

7 Ways to Leverage an App's Press Coverage with Investors

If you've already scored some good media coverage, use it to your benefit when trying to score funding.
Founders Are From Mars, Capital Providers From Venus

Founders Are From Mars, Capital Providers From Venus

Given their different views of the world, it's a miracle that they ever get together.
Have a Burning Business Question? Ask the Expert: Bo Yaghmaie.

Have a Burning Business Question? Ask the Expert: Bo Yaghmaie.

Assisting startups and major corporations with financing, Bo Yagmaie is looking to take entrepreneurs questions relating to VCs, funding and corporate formation.
Who Is the Right Investor for You? That Depends on Where You Are Now.

Who Is the Right Investor for You? That Depends on Where You Are Now.

There are five stages of new ventures. Each one will determine who you should seek funding from.
6 Questions to Determine If a Potential Investor Is the Right Investor

6 Questions to Determine If a Potential Investor Is the Right Investor

Entrepreneurs need to scrutinize potential investors as closely as investors study the potential investment.
Why I'm Glad I Didn't Take VC Funding

Why I'm Glad I Didn't Take VC Funding

While many entrepreneurs are clamoring to get their hands on some outside funding, some founders aren't really down with that strategy.
How Giving Could Become Your Default Weapon of Choice

How Giving Could Become Your Default Weapon of Choice

Three successful leaders in business are modeling the idea that being generous is a valuable goal in itself.
Consider Control and Voting Rights When Making Venture Capital Deals

Consider Control and Voting Rights When Making Venture Capital Deals

Investors want to protect their stake, entrepreneurs want to keep control. There is room to negotiate.
On-Demand Grocery Startup Instacart Raises $44 Million From Big-Name Investors

On-Demand Grocery Startup Instacart Raises $44 Million From Big-Name Investors

A cross between Peapod and Uber, Instacart allows customers to select items online from their favorite grocery stores and have them picked up and delivered by locals.
Airbnb Co-Founder: If Rejection Slows You Down, Entrepreneurship Isn't For You

Airbnb Co-Founder: If Rejection Slows You Down, Entrepreneurship Isn't For You

The apartment-rental platform is no stranger to controversy and criticism, but its founders say determination is everything.
Secure That First Investor, and the Rest Will Come

Secure That First Investor, and the Rest Will Come

Venture capital's dirty little secret: investors don't like going it alone.
Uber Breaks a Record With Its Latest Funding Round

Uber Breaks a Record With Its Latest Funding Round

With $1.2 billion from Fidelity and others, Uber sets the bar for other private companies in VC funding.
Jared Leto Is the Latest Celeb to Hop on the Entrepreneurial Bandwagon

Jared Leto Is the Latest Celeb to Hop on the Entrepreneurial Bandwagon

The Academy Award-winning actor and musician has invested in tech startup Zenefits, an automated human resources company.
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