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

The Worst Business Plan Mistake Entrepreneurs Make

The Worst Business Plan Mistake Entrepreneurs Make

If you think you can just hire someone else to do the dirty work of writing your business plan, think again.
How Blind Smartphone Users Helped This Startup Test the Waters

How Blind Smartphone Users Helped This Startup Test the Waters

The co-founder of Fleksy explains how focusing on a niche demographic prepared him for the mass market.
Uber and Flipboard Help VC Deal Activity Hit $7.2 Billion Last Quarter

Uber and Flipboard Help VC Deal Activity Hit $7.2 Billion Last Quarter

While the mobile industry had a record-breaking quarter for VC funding, health care was a flop.
Venture Capital Trends by State, Industry (Infographic)

Venture Capital Trends by State, Industry (Infographic)

Venture capitalists invest approximately $20 billion a year into U.S. companies. Where does the money go? This infographic has the answers.
Your Secret Decoder Ring for VC Speak

Your Secret Decoder Ring for VC Speak

Venture capitalist Sharon Wienbar gives us the skinny on what kind of questions VCs ask and why they ask them.
Why Equity Crowdfunding Isn't a Threat to Venture Capital

Why Equity Crowdfunding Isn't a Threat to Venture Capital

Under the JOBS Act, there will be new ways to raise money. But not all fund-raising is created equal.
Twitter's IPO Will Make All These People Millionaires and Billionaires

Twitter's IPO Will Make All These People Millionaires and Billionaires

With the IPO set, Twitter's venture capital investors, longtime employees and other stockholders are about to become very wealthy.
Steve Case's New $200 Million VC Fund Will Invest 'Off the Beaten Path'

Steve Case's New $200 Million VC Fund Will Invest 'Off the Beaten Path'

Billionaire Steve Case shares his plans for Revolution Ventures, which will focus on tech companies outside the proving ground of Silicon Valley.
Fundraising 101: Words of Advice From One Founder to Another

Fundraising 101: Words of Advice From One Founder to Another

For our series The Grind, the founder of Travefy offers up advice on securing external capital.
Why Equity Crowdfunding Is a Terrible Idea

Why Equity Crowdfunding Is a Terrible Idea

Equity crowdfunding proposes a fair shot for all entrepreneurs, but as with most things in a capitalist structure, only the strong will survive.
Ditch the Business Plan, Get Online and Other Tips for Dealing With Investors

Ditch the Business Plan, Get Online and Other Tips for Dealing With Investors

Venture capitalist John Frankel offers up advice on how to meet and pitch investors.
AngelList Raises $24 Million as Ban on General Solicitation Lifts

AngelList Raises $24 Million as Ban on General Solicitation Lifts

The online platform where investors and startups connect has reportedly raised $24 million in an investment round.
How to See Your Startup Through The Eyes of Investors

How to See Your Startup Through The Eyes of Investors

Understanding exactly what investors want before you go into a VC pitch will help ensure you connect with investors and close the deal.
Can Entrepreneurs Really Wear What They Want?

Can Entrepreneurs Really Wear What They Want?

You may be your own boss, but that doesn't mean you should pull a Mark Zuckerberg and wear hoodies to investor meetings. Here's some advice.
Pouncing on New SEC Rules, Entrepreneurs Develop Tech-Based Solutions for Accrediting Investors

Pouncing on New SEC Rules, Entrepreneurs Develop Tech-Based Solutions for Accrediting Investors

Some entrepreneurs are looking to streamline the potentially onerous process of accrediting investors in accordance with the SEC's new rules on general solicitation.
New Crowdfunding Platform Gives Hardware Innovators Realistic Production Sources

New Crowdfunding Platform Gives Hardware Innovators Realistic Production Sources

HWTrek offers hardware innovators the opportunity to prove their business model to experts, consumers and manufacturers.
Web Startup Scores $28 Million to Simplify A/B Testing

Web Startup Scores $28 Million to Simplify A/B Testing

Optimizely found a way to make website optimization easier and everyone from Obama to venture captalists took notice.
How the Founder of S.W. Basics Got Her Confidence Back

How the Founder of S.W. Basics Got Her Confidence Back

When you are looking to raise growth funding, you'll often have to answer extremely tough questions about your business and yourself. Here's how one business owner rediscovered just how important it is to be confident.
Have a Burning Business Question? Ask the Expert: John Frankel

Have a Burning Business Question? Ask the Expert: John Frankel

VC John Frankel of ff Venture Capital wants to answer your big startup questions about raising funds, meeting investors and pitching.
What Every Entrepreneur Should Know About Valuations

What Every Entrepreneur Should Know About Valuations

Read the first part of a series that breaks down what you really need to know about venture capital deals.
Car-Service Company Uber Reportedly Valued at $3.5 Billion

Car-Service Company Uber Reportedly Valued at $3.5 Billion

The San Francisco-based limo company has also reportedly received approximately $250 million from Google Ventures, the largest investment that Google's venture capital arm has ever made.
The 5 Must-Have Elements of a Flawless Pitch

The 5 Must-Have Elements of a Flawless Pitch

Founder and CEO of PR firm Write2Market Lisa Calhoun offers up advice on how to deliver a pitch perfect presentation.
4 Ways to Blow It When Pitching For Venture Capital

4 Ways to Blow It When Pitching For Venture Capital

Venture capitalists are not just looking for the best idea. They want to make sure you know how to pitch it.
ZocDoc Is Cyrus Massoumi's Vision of Delivering Better Health Care

ZocDoc Is Cyrus Massoumi's Vision of Delivering Better Health Care

Founder Cyrus Massoumi shares the story behind ZocDoc's humble origins and how to build a renowned company culture.
Investors Across the Globe Warm Up to U.S. Businesses, Cool to Emerging Markets

Investors Across the Globe Warm Up to U.S. Businesses, Cool to Emerging Markets

The investing community slows its headlong dash into some of the riskier entrepreneurship countries, according to a new report.
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