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

App Makes Creating a Single Page 'Pitch Site' Super Simple

App Makes Creating a Single Page 'Pitch Site' Super Simple

Crushpath's easy-to-use software connects social media feeds and Salesforce software into one convenient package.
Everything You'd Ever Want to Know About 31,216 Startups (Interactive Graphic)

Everything You'd Ever Want to Know About 31,216 Startups (Interactive Graphic)

This tool provides a near exhaustive look at the past 22 years (and counting) of startups.
Why Venture Capitalists and Entrepreneurs Often Don't See Eye to Eye

Why Venture Capitalists and Entrepreneurs Often Don't See Eye to Eye

The National Venture Capital Association released its first brand influence study on the venture capital industry today.

Software and Biotech Companies Lead the Pack in VC Funding

Venture-capital funding increased slightly in the second quarter from the previous quarter, according to a new report.

VC Funding of U.S. Companies Falls to Lowest Level in 3 Years

Venture-capital funding has declined sharply year-over-year in the second quarter, according to the latest data from Dow Jones VentureSource.
A Startup Brings High-Tech Sports Analytics to School Teams

A Startup Brings High-Tech Sports Analytics to School Teams

The online video and analytics platform Krossover analyzes plays for high school and college teams.
Steve Case on Startups That Attract His Attention and What Kills a Deal

Steve Case on Startups That Attract His Attention and What Kills a Deal

Need VC? The investor and AOL co-founder on how he decides on who gets funding.

Where to Look for Investors to Fund Your Startup

Co-founder of SkyMall Inc. and Worthworm Alan Lobock provides young entrepreneurs tips on approaching investors.
Students Funding Students: A Look at Campus-Based Investment Funds

Students Funding Students: A Look at Campus-Based Investment Funds

In the race to find the next young entrepreneurial dynamo, VC firms are increasingly putting students in control of the selection process.
The Art and Science of Company Valuations (Infographic)

The Art and Science of Company Valuations (Infographic)

See a visual explanation of how young companies are valued, in some cases before they're even making money.
Entrepreneur Puts a Revolutionary Spin on Electric Motorcycles

Entrepreneur Puts a Revolutionary Spin on Electric Motorcycles

Daniel Kim's startup Lit Motors and its groundbreaking take on the motorcycle has pulled in more than $1 million in angel funding.

VC Fund to Offer $25 Million to Leap Motion App Developers

Highland Capital Partners plans to finance and mentor developers creating apps for the cutting edge technology.
Lessons From a Startup That Scored $836 Million in VC -- and Failed

Lessons From a Startup That Scored $836 Million in VC -- and Failed

Better Place, based in Palo Alto, Calif. won funding from investors like General Electric and Morgan Stanley, yet had to shut its doors in May. Here are lessons to learn from the startup's missteps.
Online VC Service Lets More Investors Into the Game

Online VC Service Lets More Investors Into the Game

FundersClub helps facilitate financing in early-stage companies for small investors who want to make small investments.

8 Startup Events and News to Know About This Week

Master the art of cross-channel marketing at Integrated Marketing Week, take advantage of the guerrilla pitch opportunity of the year, enter the NY startup scene with drinks and demos at 3rd Ward in Brooklyn, become a social media superstar, create a happy and positive business environment, rumors predict new Apple iPad5 and MacBook Air release, PandoDaily hosts Fred ‘The Don’ Wilson for a 90-minute, on stage shakedown, refine new ideas and find your MVP at Lean Startup Machine… This week’s notable news and startup events for young treps.

A Quick Guide to Finding a Venture Capital Match

Looking for money to grow a company or get it off the ground? There are venture capital firms across the country eagerly seeking to fund good business ideas, but fit and size matter.
Bloomberg Opens $75 Million Venture Capital Fund

Bloomberg Opens $75 Million Venture Capital Fund

The New York City-based media company becomes the latest high-profile corporation to commit to nurturing startups.
Kickstarter's Rising Competition: Crowdfunding Alternatives to Donation-Based Sites

Kickstarter's Rising Competition: Crowdfunding Alternatives to Donation-Based Sites

The JOBS Act may soon go into effect, but young entrepreneurs don't need to wait to look for investors in the crowd.

5 Ways to Lose Investors in Under 3 Minutes

The opening of your investor pitch is critical. Flounder and you might lose a venture capitalist's attention from the start. Here are five missteps VCs look out for when sitting down with entrepreneurs.
5 Reasons a Young Entrepreneur Should Raise Outside Funding

5 Reasons a Young Entrepreneur Should Raise Outside Funding

Investor Peter S. Cohan gives us the lowdown about scenarios when a young entrepreneur should turn to investors for funds.
3 Tips for Doing Deals With Big Companies

3 Tips for Doing Deals With Big Companies

A role-playing event at a New York City incubator shows what early-stage startups should look out for when trying to land their first big client.
A $50 Million Bet on Las Vegas Tech Startups

A $50 Million Bet on Las Vegas Tech Startups

How the Vegas Tech Fund plans to help transform the tech scene in Sin City, in part two of our series on Tony Hsieh's $350 million Downtown Project.
Spreading the Love of Silicon Valley (Infographic)

Spreading the Love of Silicon Valley (Infographic)

Let's face it, Silicon Valley is still the mecca for startups, and every other city is playing catch up.

Google Glass Adds Facebook, Tumblr and 5 Other New Apps

Read about new Google Glass apps, Yahoo's interest in buying Tumblr, Jelly's major investors and more social-media news.

Why Raising Capital Is a 4-Step Process

Seeking funding for your business shouldn't be a one-time endeavor. Here are four stages of business development that can serve as a road map for your funding strategy.
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