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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Latest blogosphere posts tagged “venture capital”

• Asana Aims to Change the Way We Work

  
  Bits — Authority: 768
  Office work, filled with overflowing e-mail inboxes and pointless meetings, could be a lot more efficient and productive. One start-up, Asana, is trying to fix the problem. How? Well, that is still a secret. Asana was founded last December by Dustin Moskovitz, a co-founder of Facebook, and Justin Rosenstein, an ...
  19 hours ago

• Irvine-based Diedrich Coffee Inc. is the subject of a bidding war

  
  DataGrant Venture Capital News — Authority: 133
  A frantic bidding tussle is ensuing between Vermont-based coffee maker Green Mountain Roasters Inc. and Emeryville-based coffeehouse operator Peet’s Coffee and Tea Inc. The latter recently upped its offer to compete with the former. Peet’s offered $213 million in cash and stock for Diedrich earlier this month. ...
  21 hours ago

• Unidentified Buyer Gives A Ray Of Hope To Freedom’s East Valley Tribune

  
  DataGrant Venture Capital News — Authority: 133
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  21 hours ago

• Anatomy of Demand Media – The $1 Billion Information Marketing Company

  
  Kikabink News - Internet Marketing News — Authority: 435
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  22 hours ago

• Milo Raises Money to Help People Shop Offline

  
  Bits — Authority: 768
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  1 day ago

• Milo Raises Money to Help People Shop Offline

  
  NYT > Theater — Authority: 912
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  1 day ago

• Overthrowing the incubation regime

  
  InnExperience - Innovation goes bananas!! — Authority: 110
  From an earlier post Business Incubation 101  that forms the preamble of my incubation idea. Thanks for all the offers of support – shows me that the idea resonates with many. 1. First bring the academia out of the safety of the cocoons we’ve woven around them. Have them check out what the world looks like. ...
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• SantoSolve AS Kinetic with $5.5M for Amputee Pain Relief

  
  alarm:clock euro — Authority: 127
  Oslo based SantoSolve AS received a boost with a new $5.5M (€3.6M), injected by Scandinavian VCs Teknoinvest , InnovationsKapital and Investinor . The Norwegian pharmaceutical/biotech company focuses on targeted pain therapeutics using a novel class of active ingredients. The topical analgesic products that ...
  1 day ago

• Companies that add value to their ecosystems are more sustainable

  
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• Cozi Teams Up with MWV, Naverus Acquired by GE, Bio Architecture Lab Raises $8M, & More Seattle-Area Deals News

  
  Xconomy — Authority: 704
  Roundup , deals , VC Gregory T. Huang wrote: It was a fairly busy week for deals heading into the Thanksgiving holiday. The Northwest saw some action across aviation, alternative fuels, wireless, software, and biotech. —Kent, WA-based Naverus was acquired by GE Aviation , an operating unit of General ...
  1 day ago

• IPO talk revs up for Tesla Motors

  
  Blog of Intellectual Capital — Authority: 125
  Sounds to me like Tesla is going public. Here is some coverage on the topic from The GreenBeat blog at WSJ Online. “Rumors are swirling today that Tesla Motors is seriously considering an initial public offering sometime soon. The talk has been tracked to two anonymous sources, who say the six-year-old company ...
  1 day ago

• Clemson Gets Money for Study of Wind Energy

  
  DealBook — Authority: 774
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  1 day ago

• Dubais largest private equity firm venturing into venture capital …

  
  Dubai for Visitors — Authority: 154
  Dubai Investors | Dubai’s largest private equity firm venturing into venture capital | DubaiBeat.com. View original here:  Dubais largest private equity firm venturing into venture capital …
  1 day ago

• Business angels and venture capitalists

  
  Start-Up: the book — Authority: 104
  The question often arises about the difference between the two groups, business angels and venture capitalists. The simple answer, which claims that angels come at the seed and early stages whereas VCs only come later, is misleading. For example, Google got $1M from Business Angels initially whereas Yahoo got its 1st ...
  1 day ago

• Presentation style matters when pitching to VCs.

  
  BZ Notes! — Authority: 104
  My colleague Adam Berrey has a great post on his blog about pitching to VCs. I see hundreds of pitches/year and it still amazes me that so many people don’t pay attention to their presentation skills even when they get the coveted opportunity to present to a VC partnership. Here are some  general ...
  1 day ago

• Some Venture Capital Firms Lower Fees

  
  Pension Risk Matters — Authority: 113
  According to Wall Street Journal reporter Pui-Wing Tam, hedge funds are not alone in reducing their fees to entice investors. As laid out in "Venture Funds Sweetening the Terms," fund-raising is down 65% from $58.2 billion in 2008 to $20.4 billion as of the beginning of November 2009. To offset a difficult economic ...
  1 day ago

• Ace Metrix Gets $1.7M

  
  socalTECH.com - Southern California High Tech News — Authority: 491
  Los Angeles-based Ace Metrix , which operates a service to help television advertisers judge the effectiveness of their creative, has raised $1.7M in a debt funding round, according to a regulatory filing from the firm Monday. Details on the funding were not announced. Ace Metrix has previously raised funding from ...
  1 day ago

• Naverus, a Company That Makes Flight Paths Greener, Gets Acquired by GE

  
  Xconomy — Authority: 704
  deals , acquisitions , Aviation Gregory T. Huang wrote: Kent, WA-based Naverus , which develops navigation technologies for airplanes, has been acquired by GE Aviation, a Cincinnati-based division of General Electric. Financial terms of the deal weren’t disclosed today in GE’s official announcement ...
  1 day ago

• Cleantech Open: And the award goes to ... EcoFactor

  
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  1 day ago

• Do Seattle Startups Care Too Much About Retail, Too Little About Building a Huge Audience?

  
  Xconomy — Authority: 704
  startups , Internet , community Gregory T. Huang wrote: Oh no you didn’t . Come on, Andrew Chen, you know better than to call out Seattle tech startups for not producing a world-changing consumer Internet company in the past few years. You’re an outsider now, having left Seattle for the San ...
  1 day ago

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