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

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.
The Next Big Thing in Crowdfunding: In-Person Events

The Next Big Thing in Crowdfunding: In-Person Events

When it comes to landing funding, a smile and a handshake still go a long way. Check out the latest wave in crowdfunding.
Barbara Corcoran on Two Things Investors Look For

Barbara Corcoran on Two Things Investors Look For

The Shark Tank investor describes exactly what she looks for when entrepreneurs pitch to her.
5 Tips for Customizing Your Pitch for Every Investor

5 Tips for Customizing Your Pitch for Every Investor

Like entrepreneurs, investors also tend to specialize in certain industries. Here's how to cater to all of them.
What's Hot in Venture Capital in 2013

What's Hot in Venture Capital in 2013

A panel of New York City venture capitalists say advertising technology, financial technology and nanotechnology will be among 2013's most buzzworthy sectors.
Social Marketing Service Gets a VC Boost

Social Marketing Service Gets a VC Boost

Social Toaster, an online marketing service, snags $2 million by sticking close to home.

Video Chat: Brad Feld on Winning Over Brad Feld

Entrepreneur and early-stage venture investor Brad Feld sits down with business coach Antonio Neves to bring you the 411 on how to land him as a mentor or investor.

Video Chat With Brad Feld, Today at 12:30pm ET

For budding young entrepreneurs a little guidance can go a long way. Stay tuned for our video chat with Brad Feld, the entrepreneur and early-stage venture investor.
Venture Capitalist Investing Might Take a Dip in 2013

Venture Capitalist Investing Might Take a Dip in 2013

Seed-stage companies had a particularly rough go in 2012, and money will likely to be sparser in 2013.

4 Steps for Making Early Financial Projections

Tech expert Prerna Gupta on how to convince investors that the potential of your startup is worth their money.
How a New Take on the Stroller Snagged $20 Million in Funding

How a New Take on the Stroller Snagged $20 Million in Funding

4moms, an inventive child-care products business plans to build tech into strollers and infant seats.
What's Ahead in 2013 for Venture Capital

What's Ahead in 2013 for Venture Capital

Startups in enterprise IT are more likely to come out ahead next year, but those in the consumer space may have a harder time getting funding.
10 Questions to Answer Before Pitching Investors

10 Questions to Answer Before Pitching Investors

Preparation can mean the difference between securing funding and being left high and dry. Here's how to make sure you've covered all your bases.
Kathryn Minshew on Why Silicon Valley Needs a Feminine Touch

Kathryn Minshew on Why Silicon Valley Needs a Feminine Touch

The young founder of The Daily Muse discusses her charmed career in entrepreneurship and offers advice to fellow founders just getting started.
How to Speak the Language of Venture Capital

How to Speak the Language of Venture Capital

If you're new to the world of raising money, it helps to know the lingo. Here's a guide to the foreign language investors speak.
Mark Peter Davis on the Problem With the VC Industry

Mark Peter Davis on the Problem With the VC Industry

Mark Peter Davis' journey from venture capitalist back to entrepreneur has given him a unique perspective on the new challenges of start-up fundraising.
5 Funding Sources to Grow Your Business (Infographic)

5 Funding Sources to Grow Your Business (Infographic)

A look at the pros and cons of securing capital from crowdfunding, angel investors, venture capitalists, the SBA and community banks.

Have a Killer Business Idea? Here’s How to Vet It

Venture capitalist Jason Green shares his tips on how to be sure you have a quality concept before launch.
Eventbrite: $1 Billion in Tickets and Counting

Eventbrite: $1 Billion in Tickets and Counting

The event organization platform tickets everything from local cooking classes to stops on the Vans Warped Tour. The secret to its success? Tapping into the zeitgeist.
The Art of Taking Advice: It Isn't What You Ask, It's Whom You Ask

The Art of Taking Advice: It Isn't What You Ask, It's Whom You Ask

When considering who to seek advice from, consider the expertise, timing and motivation behind the words of wisdom.
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