My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Starting a Business

Institutional Venture Capital

If your company has potential for rapid growth, institutional venture capital could be for you.
1 min read
Opinions expressed by Entrepreneur contributors are their own.

Definition Or Explanation: Institutional venture capital comes from professionally managed funds that have $25 million to $1 billion to invest in emerging growth companies.

Appropriate For: High-growth companies that are capable of reaching at least $25 million in sales in five years.

Supply: Limited. According to recent surveys from the National Venture Capital Association, U.S. venture capital firms annually invest between $5 billion and $7 billion. Many of these investment dollars go to companies already in the institutional venture capitalist's portfolio.

Best Use: Varied. From financing product development to expansion of a proven and profitable product or service.

Cost: Expensive. Institutional venture capitalists demand significant equity in a business. The earlier the investment stage, the more equity is required to convince an institutional venture capitalist to invest.

Ease Of Acquisition: Difficult. Institutional venture capitalists are choosy. Compounding the degree of difficulty is the fact that institutional venture capital is an appropriate source of funding for a limited number of companies.

Range Of Funds Typically Available: $500,000 to $10 million.

From Where's the Money? Sure-Fire Financing Solutions for Your Small Business, by Art Beroff and Dwayne Moyers. (c) Entrepreneur Press, 1999.

6 Years After 'Shark Tank,' This Lobster Roll Food Truck Clawed Its Way Into a Multi-Million Dollar Business