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

Another Score for Crowdfunding: Indiegogo Raises $40 Million

Another Score for Crowdfunding: Indiegogo Raises $40 Million

The San Francisco-based fundraising platform secured a hefty pile of cash which it will use to grow globally and make its platform more mobile-friendly.
Vesting: A Founder's Need to Earn Equity

Vesting: A Founder's Need to Earn Equity

An insider's take on what you need to know about vesting provisions in venture capital deals.
What Industries Venture Capitalists Are Hot For

What Industries Venture Capitalists Are Hot For

Dow Jones VentureSource released its U.S. venture capital report today showing where VCs were investing, both by industry and geographically in 2013.
Head in the Clouds: Dropbox Reportedly Valued at $10 Billion

Head in the Clouds: Dropbox Reportedly Valued at $10 Billion

In its latest round of fundraising, the cloud storage company raised a reported $250 to $400 million at a valuation of $10 billion.
Contently's New $9 Million Crown Proves Content Is King

Contently's New $9 Million Crown Proves Content Is King

Contently, a startup transforming the way journalists and marketing companies do business, has raised $9 million in Series B funding.
E-Reading Startup Oyster Raises $14 Million

E-Reading Startup Oyster Raises $14 Million

Oyster, which employs a business model similar to Netflix, received $14 million in its second round of financing.
Is Your Product a 'Vitamin' or 'Painkiller?'

Is Your Product a 'Vitamin' or 'Painkiller?'

Make sure your product is something that your clients need to have, otherwise your revenue potential will be low.
3 Ways to Boost Your 'Executive Presence' While Pitching for Funding

3 Ways to Boost Your 'Executive Presence' While Pitching for Funding

An entrepreneur has precious little time to convince anyone they are the real deal. Here are some ways to help your chances.
Young Female Entrepreneurs' Advice on Securing Funding

Young Female Entrepreneurs' Advice on Securing Funding

These ladies have found success getting money for their companies. Here's how they did it.
Why Updated VC Models Are a Win for Entrepreneurs

Why Updated VC Models Are a Win for Entrepreneurs

Good companies are always desirable, but the level of demand right now is unprecedented.
Uber Deepens Discounts on Its UberX Service

Uber Deepens Discounts on Its UberX Service

The venture-funded startup will reduce prices of its UberX service by 15 to 34 percent in many of the cities where it is currently available.
Where to Get the Money to Build Your Mobile App

Where to Get the Money to Build Your Mobile App

You have a great idea for an app, but how do you find the funds you need to develop it?
Have a Burning Business Question? Ask the Expert: Kirsten Green.

Have a Burning Business Question? Ask the Expert: Kirsten Green.

The investor behind hot startups Warby Parker, Birchbox and Bonobos is looking to take your questions.
Why You Need to Think Twice About Seeking Venture Capital

Why You Need to Think Twice About Seeking Venture Capital

Entrepreneurs seek venture capital, even though it is financially unattractive. Think twice about jumping in. The water is deep.
4 Things Investors Need to Know About Your Startup

4 Things Investors Need to Know About Your Startup

Be prepared to communicate these points, and you'll be speaking your investor's language.
A Chain of Brain-Fitness Stores Gets Big-Time Funding

A Chain of Brain-Fitness Stores Gets Big-Time Funding

After a false start, Lindsay Gaskin tweaked her business model and gained the attention of major investors.
Why You Need to Take a Close Look at Dividend Provisions

Why You Need to Take a Close Look at Dividend Provisions

Most dividend provisions fall into one of three categories. Do you understand the differences between them?
Coinbase Nets $25 Million in Largest Ever Bitcoin Fundraise

Coinbase Nets $25 Million in Largest Ever Bitcoin Fundraise

The largest Bitcoin service in the U.S. just got a major push to expand its business.
Here Is How to Get a VC's Attention

Here Is How to Get a VC's Attention

With an onslaught of startups looking to raise funds, entrepreneurs need to have their game face on to get the attention of a VC. Here are three tips to help you with your approach.
7 Ways to Kill a Perfect Investor Pitch

7 Ways to Kill a Perfect Investor Pitch

The very fact that investors are in front of you means they’re interested in hearing your pitch. You already have their attention; the trick is keeping it.
Steve Case's Revolution Growth Invests $22 Million to Help Sweetgreen Become 'Chipotle of Salads'

Steve Case's Revolution Growth Invests $22 Million to Help Sweetgreen Become 'Chipotle of Salads'

Three college kids from Georgetown launched a salad shop on the cusp of the Great Recession. Having managed to thrive in the six years since, it is now poised for explosive growth.
Social Entrepreneurship Tips from Annie's, Patagonia and Fund Good Jobs

Social Entrepreneurship Tips from Annie's, Patagonia and Fund Good Jobs

Going into business doesn't require sacrificing your ideals. Here are three lessons we learned about doing good and doing well.
Should You Go East Or West for Your Venture Capital?

Should You Go East Or West for Your Venture Capital?

There are big differences between venture capital firms on the East and West Coasts. Here's what you need to know to pick the right one.
Why Venture Capitalists Don't Care About Your Pitch

Why Venture Capitalists Don't Care About Your Pitch

Ideas are really the easy part of a startup; what VC's are increasingly looking for is the ability to execute.

What This Female CEO Learned About Gender Bias After Pitching 200 VCs

Women tend to undersell their vision compared to men when pitching VCs, but there's more to successful pitching than a big promise. Here's one CEO's lessons.
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