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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. Read More
News and Articles About Venture Capital
One of the sharks from ABC's hit entrepreneur reality show answers your questions about pitching, investing and what it's like in the shark tank.
January 18, 2012
Learning how to pitch investors is an invaluable skill. Avoid these blunders, which are sure to make a bad impression--and could kill the deal.
January 17, 2012
In 2012, it will pay to keep an eye on a few key big-picture trends. Here are the ones that make my list for top insomnia producers.
January 4, 2012
The lending market for small businesses cratered during the recession and has been on a jagged path of recovery. To help fill the void, entrepreneurs are finding alternative financing sources.
January 3, 2012
Should federal law be changed to allow crowdfunding to become more widespread? Here's why that may be a bad idea.
December 23, 2011
VCs help sharpen Warby Parker's focus on the eyeglass industry.
December 22, 2011
For young companies looking for venture investments in the New Year, finding capital may be daunting but not impossible.
December 19, 2011
It's been a banner week for Zynga with its long-awaited IPO. But there was a time when its founder was criticized for proposing a free-gaming business model.
December 16, 2011
The co-founders of Rent the Runway outline five strategies they've used to build a high-tech fashion company.
December 13, 2011
Four entrepreneurs find more than pocket change in their couch.
December 9, 2011
New York recently beat out rival Boston for the number two spot for venture capital accumulation. Here's what makes the Big Apple more appealing.
December 9, 2011
Groupon went public to overwhelming demand. But will the surge help melt the near-frozen IPO market?
November 4, 2011
Call it a bubble or not, Groupon's lower valuation may throw a wrench in it.
October 21, 2011
Pageonce lands a new cash infusion to mobilize the 'wallet of the future.'
September 26, 2011
A new reality TV show provides a behind-the-scenes look at how some fast growth businesses are able to land venture capital funding.
September 22, 2011
The stock markets' sharp swings has perhaps derailed two major public offerings this summer. Here's what continued volatility could mean for other small companies seeking venture capital.
September 16, 2011
A new strategy for an online hand-me-downs company targeting moms helps raise an infusion of cash from venture backers.
September 11, 2011
The venture capitalist and co-founder of PayPal answers questions about his initiative to back the business dreams of select teen entrepreneurs willing to put their educations on hold.
September 7, 2011
President Obama announced a new plan to give hard-hit rural businesses a lift. But some wonder if it'll ever materialize.
August 17, 2011
How three immigrant entrepreneurs found U.S. success in launching Zendesk.
July 28, 2011
How Zaarly quickly brought its concept to market, complete with celebrity investment and lots of buzz.
July 26, 2011
Twitter is quietly raising big bucks -- pegging the company's value at as much as $7 billion. What is Dorsey's secret?
July 5, 2011
Venture investor Guy Kawasaki talks about the types of businesses most likely to interest fellow VCs.
June 27, 2011
When you start a fast moving and disruptive business, VCs may soon knock on your door. Until, then check out Joe Fernandez of Klout's top five feeds to follow on Twitter.
June 1, 2011
The business guru shares his views on how to be really winning.
April 26, 2011
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