Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. Venture capital (VC) funds earn money by owning equity in the companies they invest in. These companies usually have a novel technology or business model in high technology industries, such as biotechnology, IT and software; but VC’s also invest in manufacturing entities with new technologies, process, and efficiencies.

VC’s don’t typically use their own money; that is usually an activity reserved for what is known as an angel investor and typically reserved for what is known as an angel investor and typically involves investments of $1 milllion or less. Venture capitalist form a firm and start a fund, which is often designated for a specific industry sector. The fund will attract money from pension funds, endowments, foundations, and high net-worth individuals (HNWs) and family offices who are interested in either investing in that particular sector or just looking for the higher than normal return that is the attraction and the pitfall of venture capital; investing.

Typically venture capital investment occurs after the seed funding round (Angel Round) as the first round of institutional capital to fund growth (also referred to as a Series A round) in the interest of generating a return through an eventual liquidity event, such as an IPO or trade sale of the company. Venture capital is a subset of private equity. Therefore, all venture capital is private equity, however not all private equity is venture capital.

In addition to Angel Rounds and other seed funding options, venture capital is attractive for new companies with a limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership and consequently the value of the entity.

Venture capital activity has a significant impact on the U.S. and global economies. Venture capital is a catalyst for job creation, innovation, technology advancement, international competitiveness, and increased tax revenues.

Every year, there are nearly 2 million businesses created in the USA, and approximately 600 to 800 of these new businesses get venture capital funding. The National Venture Capital Association estimates that over 11% of private sector jobs come from venture backed companies and venture backed revenue accounts for more than 21% of US Gross Domestic Product (GDP).

Venture capital investment is the way in which public and private sectors construct an “institution” that systematically creates networks for the new firms and industries, so that these entities can progress. This “institution” helps in identifying and combining pieces of companies, like finance, technical expertise, the know-hows of marketing and business models.

Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. Venture capital (VC) funds earn money by owning equity in the companies they invest in. These companies usually have a novel technology or business model in high technology industries, such as biotechnology, IT and software; but VC’s also invest in manufacturing entities with new technologies, process, and efficiencies.

VC’s don’t typically use their own money; that is usually an activity reserved for what is known as an angel investor and typically reserved for what is known as an angel investor and typically involves investmetns of $1 milllion or less. Venture capitalist form a firm and start a fund, which is often designated for a specific industry sector. The fund will attract money from pension funds, endowments, foundations, and high net-worth individuals (HNWs) and family offices who are interested in either investing in that particular sector or just looking for the higher than normal return that is the attraction and the pitfall of venture capital; investing.

Typically venture capital investment occurs after the seed funding round (Angel Round) as the first round of institutional capital to fund growth (also referred to as a Series A round) in the interest of generating a return through an eventual liquidity event, such as an IPO or trade sale of the company. Venture capital is a subset of private equity. Therefore, all venture capital is private equity, however not all private equity is venture capital.

In addition to Angel Rounds and other seed funding options, venture capital is attractive for new companies with a limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership and consequently the value of the entity.

Venture capital activity has a significant impact on the U.S. and global economies. Venture capital is a catalyst for job creation, innovation, technology advancement, international competitiveness, and increased tax revenues.

Every year, there are nearly 2 million businesses created in the USA, and approximately 600 to 800 of these new businesses get venture capital funding. The National Venture Capital Association estimates that over 11% of private sector jobs come from venture backed companies and venture backed revenue accounts for more than 21% of US Gross Domestic Product (GDP).

Venture capital investment is the way in which public and private sectors construct an “institution” that systematically creates networks for the new firms and industries, so that these entities can progress. This “institution” helps in identifying and combining pieces of companies, like finance, technical expertise, the know-hows of marketing and business models.