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”

• Clicker Launches a TV Guide for Internet Television

  
  Tech Blog of Global and Indian Companies: Gajeebo — Authority: 437
  Clicker.com launched a TV Guide for Internet television. It is designed to provide a new way to find everything from old Seinfeld episodes to cooking shows.The comprehensive Internet guide makes it easy to find programs, save them, click to them and get reminders.Read More Tweet This Post
  3 hours ago

• Avnera Raises $8M Equity Round to Advance Wireless Audio Chip Technology

  
  Xconomy — Authority: 710
  deals , VC , electronics Gregory T. Huang wrote: A consumer tech company has scored one of the bigger equity financing rounds in the Portland area this fall. Beaverton, OR-based Avnera , a fabless semiconductor company that makes chips for wireless audio applications, has raised about $8 million in ...
  13 hours ago

• Wellington opens California office

  
  Wellington Financial Blog - News, Views & Purviews — Authority: 422
  It’s a big ole world out there, and the time has come to tackle a bit more of it. We announced the opening of a California office yesterday, which is our first physical foray outside of our home base in Toronto. Since Wellington Financial Fund II started doing deals in 2004, we’ve been inundated with ...
  17 hours ago

• 2009 National Angel Summit Video for Panel 2: Co-Investment – Taking It To The Next Level

  
  National Angel Capital Organization — Authority: 126
  Our videographers have now posted some very sharply edited Youtube videos, in ten-minute increments, depicting our National Angel Summit panels!  Here are the seven increments for the second panel. This panel was moderated by John Kemp-Welch of BDC Venture Capital, with the participation of James Geshwiler , ...
  17 hours ago

• Is the Venture Capital Market Getting Its Mojo Back?

  
  Tech Beat - BusinessWeek — Authority: 134
  The venture capital market appears to be bottoming out after a long decline, according to a Fenwick & West survey of the venture capital market for the third quarter of 2009. There are two significant data points worth pulling out. First, the number of investment rounds for higher valuations (i.e. "up rounds") ...
  20 hours ago

• San Diego Serves as a Hotbed for Analytics Tech Cluster—at Least Up to a Point

  
  Xconomy — Authority: 710
  Software , Analytics , Technology Clusters Bruce V. Bigelow wrote: When Tom Clancy introduced a panel discussion yesterday at a forum on analytics software, the founder of San Diego’s Tao Venture Partners said the forum was “founded four years ago by people who had an interest in seeing San Diego ...
  20 hours ago

• Florida VC Statistic--Shocking

  
  SOPHISTICATED FINANCE — Authority: 122
  This week I heard Greg Baty from Florida Growth Fund speak. I have covered the new Florida Growth Fund several times here, including this interview with Greg. The good news is that Gregs talk was very similar to what he told me back in August. The bad news was a shocking statistic that Greg quoted. He said that the ...
  20 hours ago

• IMImobile Raises $13 Million in Second Round of Funding from Sequoia Capital and First Mark Capital

  
  Tech Blog of Global and Indian Companies: Gajeebo — Authority: 437
  IMImobile, mobile and online value-added services provider, has raised $13 million in a second round of funding led by Sequoia Capital and existing investor First Mark Capital. The new financing will enable them to develop their cloud infrastructure for Tier 1 telecom operators and allow them to expand their customer ...
  22 hours ago

• Social Recruiting

  
  A VC — Authority: 612
  Im giving the keynote talk at the Social Recruiting Summit in NYC on Monday. Ive been working on my presentation over the past few days and some themes are worth talking about. 1) Since we started Union Square Ventures in 2003/2004, we have only been involved with one retained search. Our portfolio companies have ...
  22 hours ago

• Small Talk: Elephants and entrepreneurs

  
  Entrepreneurial — Authority: 486
  Mark Suster’s blog - “Both Sides of the Table” - has become a hotspot for people seeking an insider’s glimpse into the world of venture capital investing. This week Suster wrote about the things in entrepreneur pitches that give VCs pause when considering whether or not to invest. Suster likens it to the ...
  23 hours ago

• Edwards Presents Very Promising Outlook for 2010

  
  DataGrant Venture Capital News — Authority: 130
  On Wednesday, Chief Executive of Edwards Lifesciences Corp., Michael Mussallem said that the revenue of the company is expected to grow beyond 10% by the year 2010. The Irvine-based company deals in making heart valves. At the Reuters Health Summit in New York, Mussallem told all the people present in the Summit that ...
  1 day ago

• Alliance Plans to Rework Its Finances

  
  DataGrant Venture Capital News — Authority: 130
  Alliance Health Care Services, which is a Newport Beach-based company, is planning to rework on its finances. On Thursday, it has announced a proposal to issue a sum of $200 million in debt for refinancing purposes. The Newport Beach-based company basically runs medical imaging and cancer treatment centers. Alliance ...
  1 day ago

• PanGenetics Sells PG110 to Abbott

  
  alarm:clock euro — Authority: 125
  PanGenetics, a therapeutic antibody development company with offices in UK and Netherlands has agreed to sell PG110 to Abbott, which will market this antibody worldwide. The agreement amounting $190M (€127M)includes an upfront payment of $170M (€114M) and additional milestone payments. JP Morgan is the ...
  1 day ago

• Ed Hardys Tattoo Art Is Booty for Digital Pirates

  
  DealBook — Authority: 776
  A business inspired by San Franciscos nautical past is being hijacked by its digital present. Famed tattoo artist Don Ed Hardy and his backers find themselves in a constant battle with counterfeiters.
  1 day ago

• HP Valves BV Acquires Key Valve Technologies Ltd

  
  alarm:clock euro — Authority: 125
  Netherlands based HP Valves BV, a subsidiary of Indutrade completed the acquisition of Key Valve Technologies Ltd (KVT) as per its declaration of intent announced on 2 Nov 2009. Following this acquisition, KVT is a wholly owned subsidiary of HP Valves yet remains organizationally a part of Indutrades Special Products ...
  1 day ago

• More money for online real estate: Redfin raises another $10 million

  
  Gadget Reviews — Authority: 148
  Real estate site Redfin announced today that it has raised $10 million more in a fourth round of funding.The round was led by Greylock Partners, meaning that the firm (which just raised a new fund) is the latest high-profile venture capital firm to enter the online real estate market. Real estate search engine ...
  1 day ago

• Business Grants For Minority Women

  
  lsp-perhapi — Authority: 145
  Minority women entrepreneurs know that starting a business requires capital. Most get their capital through borrowing money from the bank or friends. Yet, there are also other ways you can get capital, which is through business grants for minority women. Business grants for minority women have several advantages over ...
  1 day ago

• Cleaning House Before Its IPO Will Cost AOL $200 Million And Up To 1,000 Jobs

  
  Blog of Intellectual Capital — Authority: 124
  As AOL prepares to spin off from Time Warner in an IPO , it wants to gussy itself up so that it looks as appealing as possible tp ublic investors. Today, AOL disclosed that it plans yet another restructuring which could cost as much as $200 million . The biggest cost savings from any restructuring is usually ...
  1 day ago

• Why You Must Fail In Order To Succeed

  
  Kikabink News - Internet Marketing News — Authority: 479
  Why must you fail in order to succeed? This quote from Mark Suster (venture capital investor with Los Angeles based GRP Partners) captures it perfectly:“Success comes from experience.... (Click on the title for the full story...)
  1 day ago

• ISG: Playdom Buys Green Patch and Trippert Labs — On the Way to IPO?

  
  Inside Facebook — Authority: 660
  Playdom , the largest social game developer on MySpace and one of the larger ones on Facebook, has confirmed a couple purchases we’ve been hearing rumors about recently. It has bought Facebook game developer Green Patch , as well as iPhone developer Trippert Labs , both for undisclosed amounts. The company ...
  1 day ago

Comments about venture capital