Venture Capital

A small business looking to grow often needs money for expansion. Venture capital is designed to help such early stage businesses.

Venture capital firms are generally funded by institutional investors such as pension funds, insurance companies, foundations, or high net worth individuals. These investors allocate some of their investment capital to venture firms in hopes of getting a piece of a young company that turns out to be highly profitable.

The goal of venture capital firms is to identify early stage companies with high growth potential. Ideally, they invest early for a significant ownership stake. While it is risky to invest in startups, venture capitalists don’t expect every company to make it. They use a portfolio-based approach where a lot of failed companies are more than redeemed by the success of a few profitable company sales or initial public offerings (IPOs).

Raising venture capital money is complicated. You should be sure to do your homework, hire good attorneys, and be truly certain you need outside investment before accepting venture capitalists as co-owners of your business.

by Scott Fox Are you a writer, passionate about this or any other topic? Join Blogcritics!

Latest blogosphere posts tagged “Venture Capital”

• BioVex Secures Additional $30M to Complete Cancer Treatment Study

  
  alarm:clock euro — Authority: 122
  BioVex Inc, a company developing new generation biologics for the treatment and prevention of cancer and infectious disease, has concluded $70M (€46M) in private financing, raising $30M (€20M) in addition to the $40M (€26M) announced in March. This second round of funding was led by Morningside Venture , ...
  7 hours ago

• Accel Reiterates Growth Investing in India

  
  alarm:clock euro — Authority: 122
  With Neeraj Bharadwaj as Managing Director, Accel Partners, a leading global venture capital and growth equity firm operating in Silicon Valley, Europe, Israel, China and India, has reiterated its focus to build its growth equity investing initiative in India. This will complement Accels existing venture capital ...
  7 hours ago

• Does Silicon Valleys Spending Spree Signal a Recovery?

  
  NYT > Theater — Authority: 913
  Big technology companies are spending $1.5 billion to buy three high-profile startups, after a long drought in acquisitions and initial public offerings.
  9 hours ago

• Former VC to Lead DOE Loan Guarantee & Green Car Loan Programs

  
  Earth2Tech — Authority: 663
  The idea of modeling government funds after venture capital has swirled, in various forms, around the Obama administration since back in the campaign days. Now comes the latest twist: The Obama administration has named a former VC, Jonathan Silver , to head up the Department of Energy’s highly competitive loan ...
  9 hours ago

• LeadPoint Launches Ordering System

  
  socalTECH.com - Southern California High Tech News — Authority: 561
  Los Angeles-based LeadPoint , a venture-backed firm which operates an online lead exchange, said today that it has launched a new, digital order system for the lead generation industry. The firm said its order system allows buyers to submit and receive insertion orders online, instead of using FAX or phone calls. The ...
  9 hours ago

• The Definitive Brazilian Private Equity Guide: Part I

  
  FiNETIK - Financial Industry Networked Thinking - Asia and Latin America — Authority: 475
  With all of the media surrounding the opportunities found in Brazil, TriCap Partners have created the a condensed guide, “Everything You Need to Know About Brazilian Private Equity” Part I.Register here to download the special report for free Challenges for Successful Private Equity Investments in Brazil ...
  10 hours ago

• JDA & i2 Part Deux or The ‘New Normal’ for Tech M&A Deals

  
  DevelopmentCorporate — Authority: 448
  Last week JDA announced that it had reached a definitive agreement to acquire i2 for $18.00/share.  When coupled with the retirement of i2’s preferred equity the total value of the deal is $556 million.  What is interesting about the deal is its creative structure in comparison to the practically all debt deal JDA ...
  10 hours ago

• Spectrum Signs Deal With Nippon to Develop the Cancer Drug

  
  DataGrant Venture Capital News — Authority: 129
  On Tuesday, Irvine-based drug maker, Spectrum Pharmaceuticals Inc., has announced a deal with Nippon Kayaku Co. The deal with the Japanese company includes the production and commercialization of a cancer drug. The drug named apaziquone would be used for curing patients affected with bladder cancer that is limited up ...
  14 hours ago

• FMR LLC Will Aid Grubb in Refinancing Its Credit Lines

  
  DataGrant Venture Capital News — Authority: 129
  On Tuesday, FMR LLC, which is a Boston-based fund manager, announced that it has an ownership stake of 13% in Grubb & Ellis Co., which is a Santa Ana-based company. FMR Fidelity’s investments amount to more than $1.4 trillion in terms of assets under management. It is the first investor firm that has disclosed ...
  14 hours ago

• Conferences (continued)

  
  A VC — Authority: 602
  I dont like to go to conferences. I explained why in this post . But every once in a while I do attend one. Ideally its a smallish gathering on a specific topic that I am interested in. Im doing that over the next couple days in Denver at Defrag . Defrag is a conference about mining data for insight, with a focus ...
  16 hours ago

• Sanofi Taps Biotech Firm to Bolster Its Pipeline

  
  DealBook — Authority: 783
  Increasing its bet on biotechnology, Sanofi-Aventis said it would pay an additional $1 billion over eight years to Regeneron Pharmaceuticals for the discovery of new drugs.
  18 hours ago

• A Cheap Nest for Fledgling Firms

  
  DealBook — Authority: 783
  The recession has given New York City the perfect opportunity to initiate an incubation program for fledgling companies, providing cheap office space and other services in the hope of creating opportunities for local businesses.
  20 hours ago

• Launching the new USV.com

  
  Marketing.fm — Authority: 456
  I was very happy earlier this week to launch an updated version of the Union Square Ventures website. The site was designed by Phoebe Espiritu who did a great job working with our team and iterating on our design direction and brainstorms. We ended up with a very clean design with a few dynamic features I have ...
  1 day ago

• Nice Exit For Lifesize Communications: Sold to Logitech for $405mm

  
  BlindReason — Authority: 133
  Is the communications market going to be leading a rebound in venture returns? I think the sector previously written off for dead will surprise people as bandwidth demands escalate against infrastructure. When I talk to institutional investors almost exclusively they are negative on comm as a money sink. Id argue ...
  1 day ago

• A Glimmer of Light in Venture-Capital Land

  
  WSJ.com: Digits — Authority: 577
  A new survey shows some optimism is returning as venture capitalists mark up the valuations of their start-up investments.
  1 day ago

• Clearwire Closes $1.5B, Alder Scores $1B Partnership, Software Financings Are Down, & More Seattle-Area Deals News

  
  Xconomy — Authority: 712
  Roundup , deals , VC Gregory T. Huang wrote: Healthcare deals are going one way, tech deals another. That’s my read from the past week in the Northwest, where we’ve seen some of the biggest biotech deals around, even as a prominent Seattle tech venture firm (and software financings in general) head ...
  1 day ago

• How To Deal with Your Elephant in the Room

  
  The SiliconANGLE — Authority: 144
  This is part of my series on Raising Venture Capital . There’s an old saying that if I’m talking with you and I start the conversation by saying, “whatever you do, DO NOT think about Elephants ” then you can’t help but thinking about elephants while we’re speaking.  It’s called “The ...
  1 day ago

• D’Arcy Replaces Hunt As the CEO of Grubb

  
  DataGrant Venture Capital News — Authority: 129
  The Santa Ana-based company Grubb & Ellis Co. has announced Thomas P. D’Arcy as the new president and chief executive on Monday. D’Arcy will be joining the commercial real estate brokerage and investor firm by next week. D’Arcy is heading the Inland Real Estate Corp. as the chairman of the corporation. ...
  1 day ago

• Q3 Reports of Clean Energy Beats Analysts Expectations

  
  DataGrant Venture Capital News — Authority: 129
  Clean Energy Fuels Corp. is a Seal Beach-based company that operates natural gas fueling stations for filling up fleets of taxis, buses and similar other vehicles. The company has reported its third quarter reports that were low beyond expectations of analysts on the Wall Street. It happened as a result of the ...
  1 day ago

• Accel Partners $1 Billion Day

  
  DealBook — Authority: 783
  Accel Partners looked set to share in a $1.15 billion payout Monday, as two of its investments found buyers.
  1 day ago

Comments about Venture Capital