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

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.
How Entrepreneur Friendly are the Top 10 Startup Hubs?

How Entrepreneur Friendly are the Top 10 Startup Hubs?

Before you pack your bags and head off to Silicon Valley, check out how the top startup ecosystems rank when it comes to ease of starting a business.
The Startup Money Hunt: When Entrepreneurs Bring In Investors (Infographic)

The Startup Money Hunt: When Entrepreneurs Bring In Investors (Infographic)

Entrepreneurs looking to grow quickly often exchange portions of their company for cash several times in their company's lifecycle. Here is a look at what that path can look like.
From Renting Bedrooms on Airbnb to $1.5 Million in Venture Capital: Lessons in Resourceful Startup Funding

From Renting Bedrooms on Airbnb to $1.5 Million in Venture Capital: Lessons in Resourceful Startup Funding

Tracy DiNunzio, the founder of online fashion marketplace Tradesy, shares her best advice for accessing startup funding when you are a statistical outlier.
Ken and Ben Lerer Share Their Top 5 Secrets to Success for Young Entrepreneurs

Ken and Ben Lerer Share Their Top 5 Secrets to Success for Young Entrepreneurs

Big players in New York City's startup ecosystem, the investors behind Lerer Ventures provide insight into what they believe helps entrepreneurs reach their goals.
At TechCrunch Disrupt, Heavyweight Investors Answer Questions About Outside Financing

At TechCrunch Disrupt, Heavyweight Investors Answer Questions About Outside Financing

During a panel discussion at TechCrunch Disrupt NY, investors discussed when and how young entrepreneurs should go down the venture capital route.
Embrace Your Zany Side: Offbeat Ways Startups Win Over Hard-to-Reach VCs

Embrace Your Zany Side: Offbeat Ways Startups Win Over Hard-to-Reach VCs

Having a killer business idea is key, but it won't necessarily help get your foot in the door when you're looking for funding. Sometimes the best way to grab someone's attention is to get creative.
Venture Capital Funding Slows in the First Quarter

Venture Capital Funding Slows in the First Quarter

A new report shows an overall decline in investment dollars and deals but a brighter outlook for the software sector.
Clif Bar Founders Get Into Venture Capital

Clif Bar Founders Get Into Venture Capital

The founders of Clif Bar set out to fund more altruistic success stories with their venture capital firm White Road investments.
VC Heavyweights to Fund Tech Startups Creating Google Glass Apps

VC Heavyweights to Fund Tech Startups Creating Google Glass Apps

New group called the Glass Collective calls Google's wearable computer "the future" of technology.
Venture Capital's Big Boys Getting Bigger

Venture Capital's Big Boys Getting Bigger

Fewer private U.S. venture-capital funds are raising money to invest in startups, the National Venture Capital Association says. The biggest players are at the top, the smallest are at the bottom and the midsize firms watch the clock tick.
Culinary Pros Lend Credibility to a Dining App

Culinary Pros Lend Credibility to a Dining App

Chefs Feed has a network of more than 600 chefs that rate and review items at restaurants in 15 U.S. cities.
VCs See Ex-Wired Editor's DIY Drones Taking Flight

VCs See Ex-Wired Editor's DIY Drones Taking Flight

Chris Anderson left one of the most prominent posts in tech media to become CEO of 3D Robotics, a company that helps hackers and engineers build do-it-yourself drones. Last fall he locked up a $5 million funding round.

Appboy Founder on Turning a Chance Encounter into Entrepreneurship Gold

Here's how two young treps found their co-founder on the street, and went on to launch a successful venture-backed startup.

How a Stolen North Face Jacket Sparked a New Business Idea

Inspired by chaotic coat-checking systems at bars, this young trep built a startup that landed the attention of Shark Tank and Mark Cuban. See how he made it happen.

How a Stolen North Face Jacket Sparked a New Business Idea

Inspired by chaotic coat-checking systems at bars, this young trep built a startup that landed the attention of Shark Tank and Mark Cuban. See how he made it happen.
How One Young Trep Landed Venture Funding After Getting Booted from Y Combinator

How One Young Trep Landed Venture Funding After Getting Booted from Y Combinator

In starting up, sometimes the best experiences can come from the worst ones.
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