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

Peter Thiel's Newest Obsession: Nanotechnology.

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.
13 Startup Red Flags to Avoid

13 Startup Red Flags to Avoid

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

ZenPayroll Raises $20 Million in Series A Funding

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

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

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.
'Funded' Doesn't Necessarily Mean 'Validated'

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

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

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

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

Why So Many Startups Never Reach Their Second Funding Round

Seed funding often gives a company more opportunities to fail, not succeed.
Ever Heard of a Patent Map? They Can Help Predict the Future.

Ever Heard of a Patent Map? They Can Help Predict the Future.

By presenting dense technical text in a simple visual format, patent maps can be efficient tools for reading a competitive landscape, preforming due diligence and even forecasting upcoming trends.
When to Say No to Venture Capital

When to Say No to Venture Capital

Instead of seeking financing, Ryan Smith spent four years bootstrapping to get his company off the ground. Here's why.
Silicon Valley VCs Are More Confident Than They've Been in Years

Silicon Valley VCs Are More Confident Than They've Been in Years

Confidence among West Coast startup investors has reached a level not seen since 2007. For some VCs, though, the level of excitement is something to be cautious about.
Who Would Win the VC Super Bowl: Washington or Colorado? (Infographic)

Who Would Win the VC Super Bowl: Washington or Colorado? (Infographic)

As the Seahawks and the Broncos prepare for the Super Bowl, Washington and Colorado go head to head in venture capital activity.
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?
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