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

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.
Blockchain.info CEO: We Pay Employees in Bitcoin. And Someday You Might, Too.

Blockchain.info CEO: We Pay Employees in Bitcoin. And Someday You Might, Too.

We talked to the charismatic Blockchain.info CEO about Bitcoin's recent rocky press, its price ups and downs, and if we're headed for another bubble.
Raising Money for Your Business? Consider These Tips.

Raising Money for Your Business? Consider These Tips.

Being savvy about your time and money can maximize your resources as you bootstrap your business.
The Top 10 VC Deals of 2013

The Top 10 VC Deals of 2013

The software sector continues to dominate the venture market, but it's important to pinpoint the outliers of 2013.
VC 100: The Top Venture Capital Firms Backing U.S. Startups

VC 100: The Top Venture Capital Firms Backing U.S. Startups

If you want to launch a business, it's critical to know the state of startup capital. As the VC market recovers, we look at the firms funding American innovation.
How a Biomed Tech Company Raised $35.7 Million Before Going to Market

How a Biomed Tech Company Raised $35.7 Million Before Going to Market

CardioInsight found a way to 3D map the heart's electrical activity, but it took a village of funding resources to get there.
A Foolproof Guide to Raising Capital for Startups

A Foolproof Guide to Raising Capital for Startups

Pass these nine tests and investors will beat a path to your door. Along the way you'll figure out if your firm has a great CEO.
10 Reasons Why You Shouldn't Join a Startup

10 Reasons Why You Shouldn't Join a Startup

Beyond the glitz and hype, a new businesses may present a certain gritty reality. Steer clear if you're not prepared.
Actually, You Don't Need VC Funding to Succeed

Actually, You Don't Need VC Funding to Succeed

It is a rare startup that has the backing of venture capital fund, so forget about wooing investors and concentrate on wooing customers with your unique selling proposition.
Shopping for Startup Capital Outside of Silicon Valley

Shopping for Startup Capital Outside of Silicon Valley

Entrepreneurs have lots of financing options beyond checking out venture firms in California. Here are six techniques to try.
BitPay Raises Record $30 Million in Series A Funding, Biggest in Bitcoin Industry Yet

BitPay Raises Record $30 Million in Series A Funding, Biggest in Bitcoin Industry Yet

The Atlanta Bitcoin payments pioneer closes a record-breaking funding round from billionaire Richard Branson, Yahoo co-founder Jerry Yang, PayPal's Peter Thiel, Index Ventures and other all-star investors.
3 Alternative Tech Startup Cities With Less Traffic, More Housing (Infographic)

3 Alternative Tech Startup Cities With Less Traffic, More Housing (Infographic)

Three Western locales previously considered vacation destinations are now alternatives to Silicon Valley life at a much more affordable price.
Why Today's Bullish Economy Is Bad for VCs, But Good for You

Why Today's Bullish Economy Is Bad for VCs, But Good for You

A stable economy means less competition for scoring investment.
Need to Raise Money for Your Startup? This Book Might Be For You.

Need to Raise Money for Your Startup? This Book Might Be For You.

In this video, Entrepreneur.com contributor John Rampton talks about a book that explains a topic that's very important to serious business owners: raising money.
The Entrepreneur's Secret Weapon: Persistence. (See General Grant.)

The Entrepreneur's Secret Weapon: Persistence. (See General Grant.)

With slow, steady striving to solve a problem from many different angles, an innovator can arrive at a breakthrough.
Venture Capital Is In a Recovery, Not a Bubble

Venture Capital Is In a Recovery, Not a Bubble

Just because venture investment is up doesn't mean we are awash in froth.
Inside the Mind of Big-Time Investor Fred Wilson

Inside the Mind of Big-Time Investor Fred Wilson

In this question-and-answer interview, Wilson discusses retirement, Tumblr's exit and getting over a difficult year.
This VC Powerhouse Doesn't Want to Hear Your Elevator Pitch

This VC Powerhouse Doesn't Want to Hear Your Elevator Pitch

No matter how smart you are or how great you startup idea is, one big investor says the elevator-style pitch doesn't work. Here's why.
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