Venture Capital

Venture Capital

Venture Capital Basics

The Complete VC 100 Listing

The Top 10 VC Deals of 2014

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.

Ease of Acquisition: Difficult. Institutional venture capitalists are choosy. Institutional venture capital is an appropriate source of funding for only a limited number of companies.

Source: PitchBook Platform

Today's Most Read

News and Articles About Venture Capital

These Startups Found Unusual Ways to Get Funded
Startup Basics

These Startups Found Unusual Ways to Get Funded

Three entrepreneurs share the surprising ways they were able to launch their businesses.
Daniel Bukszpan
Are Candy Crush and WhatsApp Really in it for the Long Haul?
Investing

Are Candy Crush and WhatsApp Really in it for the Long Haul?

People are betting big on Candy Crush and WhatsApp, but some fear a social-gaming bubble is building.
The Cloud Wars Rage On: Dropbox Raises Mega Money as Box Has Reportedly Filed for IPO
Growth Strategies

The Cloud Wars Rage On: Dropbox Raises Mega Money as Box Has Reportedly Filed for IPO

After weeks of speculation, SEC documents confirm that San Francisco-based Dropbox has raised another monster-sized round of cash.
Catherine Clifford
The Story of Sequoia Capital's $6.4 Billion 'Revenge' on Mark Zuckerberg
Facebook

The Story of Sequoia Capital's $6.4 Billion 'Revenge' on Mark Zuckerberg

How the top venture capital firm had the last laugh -- all the way to the bank.
Uber Competitor Sidecar Now Lets Drivers Set Their Own Prices
Ridesharing Apps

Uber Competitor Sidecar Now Lets Drivers Set Their Own Prices

With a $10 million venture capital infusion and a revamped business model, the lesser-known ridesharing app revs up to roll over the competition.
Kim Lachance Shandrow
Peter Thiel's Newest Obsession: Nanotechnology.
Technology

Peter Thiel's Newest Obsession: Nanotechnology.

The co-founder of Palantir and PayPal has invested in and joined the board of Nanotronics Imaging, a microscopy and software company.
Catherine Clifford
13 Startup Red Flags to Avoid
Starting a Business

13 Startup Red Flags to Avoid

Companies plagued by any of these problems are likely headed for failure.
George Deeb
ZenPayroll Raises $20 Million in Series A Funding
Starting a Business

ZenPayroll Raises $20 Million in Series A Funding

The cloud-based payroll company plans to hire more employees and extend its reach.
Nina Zipkin
This Startup Just Raised $23 Million Thanks to Wealthiest Man in Asia
Starting a Business

This Startup Just Raised $23 Million Thanks to Wealthiest Man in Asia

Egg-replacement startup Hampton Creek has raised its biggest round of funding to date thanks to the investment of Asian billionaire Li Ka-shing.
Online Marketplace Abe's Market to Start Funding Organic Businesses
Finance

Online Marketplace Abe's Market to Start Funding Organic Businesses

The team behind online marketplace Abe's Market already gives natural product entrepreneurs a platform to showcase their products. Now, they want to help them grow their businesses by making direct investments.
Laura Entis
'Funded' Doesn't Necessarily Mean 'Validated'
Finance

'Funded' Doesn't Necessarily Mean 'Validated'

While an absence of funding can feel discouraging, don't let investment serve as the sole barometer for the worth of your enterprise.
Wil Schroter
What Keeps a City's Startup Scene Hot? Cambridge Shares Its Secrets.
Technology

What Keeps a City's Startup Scene Hot? Cambridge Shares Its Secrets.

Tech firms don't just fall from the sky; the nation's leading hubs foster a favorable business climate for innovation. But, as those in Cambridge, Mass., will tell you, the rest is up to the locals.
Tanya Benedicto Klich
The 3 Decisions We Didn't Make That Totally Changed Our Business
Growth Strategies

The 3 Decisions We Didn't Make That Totally Changed Our Business

With some decisions, it's better to not decide-- yet.
Lloyd Tabb
Why So Many Startups Never Reach Their Second Funding Round
Finance

Why So Many Startups Never Reach Their Second Funding Round

Seed funding often gives a company more opportunities to fail, not succeed.