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.

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Original Technorati articles tagged “venture capital”

• in Finance
  Technorati Exclusive - The Jump Start City Crowdfunding Community
  Jump Start City is unique in that it's backer focused and intentionally creating a community where crowdfunding enthusiasts are truly social.
  by socialmktgfella / on May 15, 2013
• in Business
  Crowdfunding Advice to Entrepreneurs: Fulfill Your Orders
  People naturally share good ideas and good products with one another. So having a new idea actually produced and distributed by a crowdfunding source that does more than just "fund," gives the budding entrepreneur a healthy advantage.
  by socialmktgfella / on Mar 20, 2013
• in Business
  Kickstarter to Launch in Britain
  Popular crowdfunding site Kickstarter opens its first international office in Britain
  by cmimanagers / on Oct 31, 2012

Latest blogosphere posts tagged “venture capital”

 

• Venture Capital Firms in India

  
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  In the previous post we cover the basics of venture capital. If you missed it here’s the post – What is Venture capital? In this post we list down the prominent venture capital firms in India. Many of these These are the firms with the most active and multiple venture capital funds i.e. in terms [...] The post ...
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• The Coffee Table: This Week In #Startups (11.5.2013)

  
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• Lazerow Discusses Buddy Media And "Dont Run Out Of Money" At VentureCrush

  
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  CAMBRIDGE, Mass. and MENLO PARK, Calif., May 10, 2013 /PRNewswire/ -- Highland Capital Partners, a global venture capital firm focused on putting the entrepreneur first, today announced the teams selected to participate in Summer@Highland, its annual student entrepreneurship program.In...
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• That Bastard!

  
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