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

14 Books Every Entrepreneur Should Read in '14

14 Books Every Entrepreneur Should Read in '14

Thousands of books offer business, leadership or startup advice, but we've narrowed down the options to some must-reads.
Crowdfunding Live: How One Spark Ignites Ideas

Crowdfunding Live: How One Spark Ignites Ideas

In-person events for financial prospecting provide benefits that online platforms don't: gathered masses, a pool of dedicated dollars and a chance to receive immediate project feedback.

Want to Start an Investment Company? Go it Alone First.

Our expert explains that experience is paramount to building a solid investing track record
When Trading Equity for Cash, Balance Is Everything

When Trading Equity for Cash, Balance Is Everything

Sell too little, and you lack the resources to grow. Sell too much, and you lose control.
3 Ways for Women to Close the VC Gender Gap

3 Ways for Women to Close the VC Gender Gap

Only 7 percent of U.S. venture capital deals go to women founders and CEOs. Let's change that statistic.
5 Things to Look for in a Venture Capitalist

5 Things to Look for in a Venture Capitalist

Former VC says you should approach these funders carefully, and be thorough in your research.
8 Ways to Hit a Home Run When Pitching a New Product to a Major Corporation

8 Ways to Hit a Home Run When Pitching a New Product to a Major Corporation

A startup approaching a large company to market its wares needs to be prepared in multiple ways. Follow this guidance from a venture capital firm.
This Billionaire Just Gave 10 Startups $100,000 Each on a Whim

This Billionaire Just Gave 10 Startups $100,000 Each on a Whim

At the first-ever Google for Entrepreneurs Demo Day, AOL co-founder Steve Case surprised each of the presenting entrepreneurs with a spur-of-the-moment $100,000 commitment.
Alibaba Goes In On Uber Competitor Lyft's $250 Million Round

Alibaba Goes In On Uber Competitor Lyft's $250 Million Round

Chinese ecommerce giant Alibaba invested in the San Francisco-based ride-sharing company, which plans to expand internationally.
Imgur Finally Says Yes to VC Funding, Accepts $40 Million From Andreessen Horowitz

Imgur Finally Says Yes to VC Funding, Accepts $40 Million From Andreessen Horowitz

Imgur has never accepted outside money before, calling former petitions by other venture capitalists a poor fit.
Fundraising 101: The First Timer's Guide to Pitching Investors

Fundraising 101: The First Timer's Guide to Pitching Investors

Pitching to investors can be a daunting and at times, tough on an entrepreneur's confidence level. Here are a few tidbits of advice on pitching from an entrepreneur who has been there, done that.
Crowdfunding's Next Hot Frontier: Real Estate

Crowdfunding's Next Hot Frontier: Real Estate

Venture capital and angel investors are sinking money into startups that are innovating the way that buildings are bought.
How to Make Time Work for You When Pitching for Funds

How to Make Time Work for You When Pitching for Funds

The hour of the day, minutes in a slide and when your idea will pay off will determine whether you'll see any money.
Aaron Levie, the Quintessential Silicon Valley CEO, Will Only Own 4.1 Percent of Box When It IPOs

Aaron Levie, the Quintessential Silicon Valley CEO, Will Only Own 4.1 Percent of Box When It IPOs

Online file-storage service Box has finally filed to go public. Here's what we know.
Seeking Funding? Be Aware of These 5 Details.

Seeking Funding? Be Aware of These 5 Details.

Venture capital has big rewards, but also added stress.
Disposable Phone Numbers Are So Hot Right Now

Disposable Phone Numbers Are So Hot Right Now

The venture capital money came pouring in for Burner, a mobile app that doles out disposable phone numbers for calling and texting.
3 Surprisingly Hot Global VC Markets That Are Getting Even Hotter

3 Surprisingly Hot Global VC Markets That Are Getting Even Hotter

The U.S., Europe, China, India and Israel continue to dominate the venture capital game, but a few emerging markets are worth keeping an eye on.
Uber Competitor Lyft Eyes $150 Million in New Funding

Uber Competitor Lyft Eyes $150 Million in New Funding

The San Francisco-based company known for the pink mustaches adhered to the front of the cars in its network is looking to close in on its fourth round of fundraising.
More Money, More Problems: The Down Side of a Mega Valuation

More Money, More Problems: The Down Side of a Mega Valuation

The bragging rights may be tempting, but achieving a jaw-dropping valuation for your company can cause problems down the line.
Does Your Team Have the Right Stuff to Attract Venture Capital?

Does Your Team Have the Right Stuff to Attract Venture Capital?

These four things may be even more important to investors than a solid business idea.
These Startups Found Unusual Ways to Get Funded

These Startups Found Unusual Ways to Get Funded

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

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

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

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

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.
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