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”

• Yelp Turns Down Google, for Now

  
  NYT > Theater — Authority: 901
  Yelps board determined that Googles current offer price was too low for the start-up, which publishes listings and reviews of local businesses.
  5 hours ago

• The Consumerization of Enterprise VC

  
  Burnham's Beat — Authority: 433
  (My day job is investing in the public markets, but I have a small personal portfolio of private investments, mostly angel investments in Internet and software related startups. In the past six months I have spent some time helping a few of these companies raise venture capital and this is the second of three posts I ...
  6 hours ago

• IPOs a Comin in 2010?

  
  Screenwerk — Authority: 525
  In the post “Yelp turned down Google” chatter the word is the company is headed for IPO city. Here’s Business Insider : Why would Yelp’s investors allow Jeremy to turn down a $550 million deal when the company’s revenues are only in the tens of millions of dollars? But our source tells us investors are ...
  6 hours ago

• Yelp Turns Down Google, For Now

  
  Bits — Authority: 772
  Yelp backed out of acquisition talks with Google over the weekend, according to two people briefed on the discussions. As we reported last week, Google was close to buying Yelp, the Web site with directories and reviews of local businesses, for more than $500 million. No agreement had been signed, and we raised the ...
  6 hours ago

• Vulcan Capital President Leaves

  
  Xconomy — Authority: 658
  Investors , Jobs , people Gregory T. Huang wrote: Seattle-based Vulcan Capital, Paul Allen’s investment firm, has confirmed today that president Chris Temple has left the company by mutual agreement. The news was first reported by TechFlash . Temple joined Vulcan Capital in 2008 and was promoted to ...
  7 hours ago

• Cleantech sector – Predictions for VC investments in 2010

  
  BZ Notes! — Authority: 112
  Predicting trends for the next year is a silly exercise. But oh well. We all play silly games some times. I will check back at the end of 2010 to see how wrong I may have been. Hot in 2010: - Water: This is a darling of VCs despite the fact that very few people have invested in the space. But I think people will ...
  8 hours ago

• University spin out fund proves a hit with scientists

  
  Daily Telegraph | Telegraph.co.uk — Authority: 966
  A public fund to help launch technology companies based on university research has been a runaway success, the first assessment of the scheme suggests.
  8 hours ago

• The Justice League of Entrepreneurs

  
  Bits — Authority: 772
  With the Justice League of America, some of the world’s most powerful superheroes banded together to fight crime.With the Start Project, some successful Silicon Valley entrepreneurs are banding together to start companies.They’re not wearing costumes (thank heavens), but the idea is basically the same. Seven ...
  12 hours ago

• The Justice League of Entrepreneurs

  
  NYT > Theater — Authority: 901
  A group of experienced Silicon Valley entrepreneurs have joined together in the Start Project to generate product ideas and spin out companies.
  12 hours ago

• Mobile Security Firms With Roots at USC Gets $5.5M

  
  socalTECH.com - Southern California High Tech News — Authority: 443
  Lookout , a firm developing security software for mobile phones and started by two recent USC graduates, has raised $5.5M in a funding , according to the New York Times this morning. According to the Times, the firm raised the new round of funding this month from Khosla Ventures. Lookout, formerly known as Flexilis, ...
  13 hours ago

• California Stem Cell Raises Series B

  
  socalTECH.com - Southern California High Tech News — Authority: 443
  Irvine-based California Stem Cell , a manufacturer of human stem cells, said today that it has raised a Series B round of funding. Amount of funding, and the investors, was not disclosed by the company. The firm said the new funding will go to support the advancement of its products toward human clinical trials, plus ...
  15 hours ago

• VCs Evaluate Cloud Investments

  
  MSPmentor — Authority: 432
  A number of cloud-related companies have attracted investment from venture capital firms in recent weeks and doubtless many more are queuing up for funding as well.  So, just what are VCs looking for in an investment candidate? At a fundamental level, investors say are looking for the same attributes they seek in ...
  16 hours ago

• As Phones Do More, They Become Targets of Hacking

  
  DealBook — Authority: 767
  Lookout, a start-up looking to capitalize on increasing security threats to smartphones, has raised $5.5 million in funding from Khosla Ventures, a prominent Silicon Valley venture capital firm.
  17 hours ago

• Hyundai Motor Announces China Truck Venture

  
  DealBook — Authority: 767
  Hyundai Motor said Sunday it had agreed to launch a $400 million truck manufacturing venture in China with a local partner as it seeks further inroads in the worlds biggest auto market.
  18 hours ago

• Qualcomm’s Top Executives Talk Shop, Verari Lays Off Nearly Everyone, Assay Depot Goes From Biotech Startup to Online Merchant, & More San Diego BizTech News

  
  Xconomy — Authority: 658
  Roundup , Economy , wireless Bruce V. Bigelow wrote: San Diego’s tech news slowed to a trickle last week, as considerable speculation focused on the restructuring at Verari Systems, which included laying off most of the data equipment supplier’s workforce. Keep reading to get the latest news. —San ...
  18 hours ago

• Getting Computer Science Into Middle School

  
  A VC — Authority: 670
  My two girls finished middle school without ever learning how to write a single line of code. My son will finish middle school this year and he will be different because several years ago, we connected him with an ITP graduate who has taught him programming and also UX and UI design. But if we had left it to our ...
  19 hours ago

• PPM, OTCBB and All Fund-raising Structures: Read This Before Paying A Consultant

  
  Chillicious.com — Authority: 156
  If you are trying to raise capital with a PPM or public entity like OTCBB you need to understand the mind of the investor. After the business plan sells the investor on the business concept you need to sell them on you and your executive staff. You need to stack your executive positions with professionals with a ...
  19 hours ago

• PPM Offering: A Must Read For Finding Investors

  
  Chillicious.com — Authority: 156
  This article is nine years in the making. The concept is so simple but 99% of the clients I consult with have made identical errors in their effort to raise capital. They will have a business plan and they will have a Private Placement Memorandum and after one read of these two documents I have to deliver the bad ...
  19 hours ago

• Chinese Site Youku Uploads $40 Million

  
  DealBook — Authority: 767
  Youku, the Chinese video-haring Web site has landed $40 million in fresh funding and is in "active" discussions to take on another $40 million.
  19 hours ago

• Investor Finders: Don\’t Try To Raise Capital Without One

  
  World News — Authority: 168
  If you own or run a company that is trying to raise capital in the current economic conditions youve undoubtedly been challenged by the limited funds available. Investors are more difficult to find and the individuals that are actually willing to part with their cash are even tougher to find. Youve talked to friends, ...
  20 hours ago

Comments about venture Capital