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

Got Investors? Now, How to Handle Your Salary

Got Investors? Now, How to Handle Your Salary

Whether your investors are friends and family or VCs, here's a guideline on how to pay yourself as your startup grows.
DVD Pick for Tech Startups: 'Something Ventured'

DVD Pick for Tech Startups: 'Something Ventured'

Trying to figure out how Silicon Valley really works? This documentary, recently released on DVD, offers plenty of insight into Apple, Intel and the money guys who bet on them.
What Facebook's IPO Debacle Means for Startup Funding

What Facebook's IPO Debacle Means for Startup Funding

The disastrous Facebook initial public offering isn't likely to damp venture-capital interest in tech startups.
Why Facebook Is Killing Silicon Valley (Opinion)

Why Facebook Is Killing Silicon Valley (Opinion)

With venture-capital investment flocking to social-media startups, who will back nascent startups innovating in such critical industries as material science, sensors, robotics, medical devices and life sciences?
What Investors Really Want to Hear in Your Pitch

What Investors Really Want to Hear in Your Pitch

A good concept is one thing, but investors are more likely to consider these three criteria -- and they can make or break your pitch
3 Things You Must Know Before Pitching Investors

3 Things You Must Know Before Pitching Investors

Consider these tips before you seek funding for your startup, whether from angel investors or VCs.
Startup CEOs Crave Venture Capital, Not Crowdsourcing

Startup CEOs Crave Venture Capital, Not Crowdsourcing

Though the passage of the JOBS Act opened the doors for crowdfunding, many startups are still seeking funding from venture capital firms, according to a new study.
Silicon Valley VCs Perk Up

Silicon Valley VCs Perk Up

Inspired by new waves of technology developments and blockbuster deals, VCs are feeling better at the start of 2012.
Venture Capital: Fewer Deals, Fewer Dollars

Venture Capital: Fewer Deals, Fewer Dollars

For the third quarter in a row, the market for venture capital shrank, continuing a long-term trend in the industry.
A VC Reflects on Instagram, the Dot-Com Bust and What It All Means for Hungry Startups

A VC Reflects on Instagram, the Dot-Com Bust and What It All Means for Hungry Startups

Rapid growth and its founders' ability to take the lion's market share are big factors in determining whether a start-up will get the attention of VC firms.
From Pinterest to Gumroad, 19-Year-Old Sahil Lavingia on His Trek Through Silicon Valley

From Pinterest to Gumroad, 19-Year-Old Sahil Lavingia on His Trek Through Silicon Valley

We spoke with the young entrepreneur about his experience as a founding team member at Pinterest and his new company Gumroad.
How a Pile of Student Debt Inspired a Venture-Backed Startup

How a Pile of Student Debt Inspired a Venture-Backed Startup

ReadyForZero racked up $4.5 million in funding to help consumers pay their bills.
Facebook's Instagram Buy to Kick Off Venture Capital Feeding Frenzy

Facebook's Instagram Buy to Kick Off Venture Capital Feeding Frenzy

The young startup has a small staff and no revenue, but Facebook's decision to buy is not just a blind gamble. Other venture capital firms will be looking to invest in similar companies.
Instagram Dreams? Wake Up. VCs Still Want to See the Money

Instagram Dreams? Wake Up. VCs Still Want to See the Money

With so many startups trying to follow in Facebook's -- and now Instagram's -- footsteps, they're forgetting one very important element: money.
How an Online Wine Seller Uncorked New Cash

How an Online Wine Seller Uncorked New Cash

Lot18 proves funding options are not dry for wine businesses.
Want to Raise Money With Crowdfunding? Consider These Tips

Want to Raise Money With Crowdfunding? Consider These Tips

A new law will increase the ability of small-business owners to raise capital from crowdfunding. But proceed with caution.
What Entrepreneurs Need to Know About Late-Stage Venture-Capital Investors

What Entrepreneurs Need to Know About Late-Stage Venture-Capital Investors

If you're looking to scale up one day, it will pay to know now about how late-stage investing works.
What the SEC Crackdown on Secondary Markets Means for Startups

What the SEC Crackdown on Secondary Markets Means for Startups

Secondary markets like SharesPost and SecondMarket present exciting new ways to increase a private company's liquidity -- but there are also dangers.
Your Community as a Startup Ecosystem

Your Community as a Startup Ecosystem

Here are the key factors for building an entrepreneurship community in your town.
Top 'Treps Urge Senate to Pass IPO On-Ramp Bill

Top 'Treps Urge Senate to Pass IPO On-Ramp Bill

The National Venture Capital Association and 700 high-profile entrepreneurs sent a letter to Congressional leaders supporting legislation to help startups go public.
Rare Partnership: Government, Citi and a Clean-Tech VC

Rare Partnership: Government, Citi and a Clean-Tech VC

The Small Business Administration announced that it has selected a clean-technology venture capital firm for a Startup America initiative.
Tech Exec's Family Inspires a Senior-Care Business

Tech Exec's Family Inspires a Senior-Care Business

Using easy-to-understand technology, Independa helps seniors stay well on their own.
Why the SBA's Early-Stage Innovation Fund Won't Help Startups Access Capital (Opinion)

Why the SBA's Early-Stage Innovation Fund Won't Help Startups Access Capital (Opinion)

One of the SBA's biggest investment programs to launch this year may fall on deaf ears as the venture-capital community swoons from years of lousy returns.
Startup Aims to Make Social Media Easier for Superstars

Startup Aims to Make Social Media Easier for Superstars

WhoSay, an insider's social-media management tool, attracts millions in financing, even without a revenue model.
10 Ways to Get Investors to Listen to Your Business Pitch

10 Ways to Get Investors to Listen to Your Business Pitch

Wooing investors is a challenge even for entrepreneurs who're enthusiastic about their business. Here are ten tips on how to craft your investor pitch.
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