Venture Capital is a type of private equity capital in which concept, seed, early, growth (Series A), and mezzanine funding are provided to ventures to support their growth, development, and expansion, in exchange for equity. Earlier round financing is less common and convertible debt is utilized; however, preferred equity is the typical form of investment in the later Series A rounds, which are much more common to the VC. VCs want to generate a return through a future liquidation event, such as a sale to a strategic player or an IPO.
Venture capital firms source their funds for investment from high net worth individuals through professionally managed funds, then invest the funds in return for an annual management fee and carried interest on the profits of the fund.
An individual who provides financial capital for venture investment, as well as managerial and/or technical expertise, is generally referred to as a venture capitalist. These resources are usually invested through a pooled investment vehicle such as an LLC or LP and invest primarily in highly risky but scalable seed, early and growth stage ventures. These funds are professionally managed by venture capital firms. The firms may employ managerial and technical experts with business and industry experience.
Two Types of Venture Capital Providers.
Venture Capital Funds – VCs are generally recognized by the public for providing financial capital or resources with a primary focus on a financial return for their investors.
FundingSage’s Listing of VC Funds
Several of these VC Funds are spotlighted on our FundingSage Startup Investor Spotlight. Learn more about potential VC investors there!
180 Degree Capital Group
3i US Growth Capital
Accuitive Medical Ventures
Adams Capital Management
Advanced Technology Ventures
Advantage Capital Partners
Angel Street Capital
ARCH Venture Partners
Astellas Venture Mangaement
Azure Capital Partners
Bain Capital Ventures
Ben Franklin Technology Partners
Bessemer Venture Partners
Canvas Venture Fund
Cardinal Venture Capital
Charles River Ventures
Columbus Nova Technology Partners
Draper Fisher Jurvetson
Flybridge Capital Partners
F-Prime Capital Partners
Fortress Capital Finance
General Catalyst Partners
Globespan Capital Partners
Hercules Technology Growth Capital, Inc
Highland Capital Partners
Index Venture Management Inc.
Insight Ventures Partners
Institutional Venture Partners
Kleiner, Perkins, Caufield, Byer
Lightspeed Venture Partners
Maryland Technology Development Corporation
Meritech Capital Partners
Mohr Davidow Ventures
New Enterprise Associates
Northbridge Venture Partners
Norwest Ventures Partners
Oak Investment Partners
OpenView Venture Partners
Partners Innovation Fund
Point Judith Capital
Polaris Venture Partners
Scale Venture Partners
Sevin Rosen Funds
Sigma Partners Boston
StarVest Partners, L.P.
Sutter Hill Ventures
SV Life Sciences
Technology Crossover Ventures
The D. E. Shaw Grou
Union Square Ventures
VantagePoint Venture Partners
Corporate Venture Capital Funds – CVCs come from existing corporations that invest their money and expertise directly into startups external to the corporation, for both strategic and financial purposes. Corporate venture capital is a significant subset of the venture capital industry.
FundingSage’s Listing of CVC Funds
Several of these CVC Funds are spotlighted on our FundingSage Startup Investor Spotlight. Learn more about potential CVC investors there!
301 Inc. (General Mills Venture Arm)
Abbvie Biotech Ventures
Alexandria Venture Investments
Ascension Health Ventures
Astellas Venture Management
AXA Strategic Ventures
BASF Venture Capital America, Inc.
Bertelsmann Digital Media Investments
BlueCross BlueShield Venture Partners
BMW i Ventures
Boehringer Ingelheim Ventures
Chevron Technology Ventures
ConocoPhillips Technology Ventures
DSM Venturing B.V.
eighteen94 Capital (Kellogg’s VC Fund)
Fosun RZ Capital
GV (Google Ventures)
IBM Venture Capital
InMotion Ventures (England)
Johnson & Johnson Development Corp
Juniper Networks Ventures
Kaiser Permanente Ventures
Kearny Venture Partners
Lenovo Capital & Incubator Group
Media Tek Ventures
Medtronic Venture Capital
Merck Global Health Innovation Fund, LLC
M12 (Microsoft Corporation)
Mitsubishi UFJ Capital
Motorola Solutions Venture Capital
MP Healthcare Venture Management
Nike Innovation + Fuel Lab
Novartis Venture Funds (Switzerland)
NTT DoCoMo Capital
NVIDIA GPU Ventures
Pfizer Venture Investments
Proctor and Gamble Ventures
Quintiles Transnational Corp (NovaQuest Capital Management)
Rakuten Ventures (Japan)
Robert Bosch Venture Capital
Roche Venture Fund
S.R. One, Limited (GSK)
Samsung Venture Investment
Sanofi Genzyme BioVentures
Shell Technology Ventures
Sony Innovation Fund
Swisscom Ventures (Cloud Innovation Lab)
Takeda Research investment
Tate & Lyle Ventures
Telstra Ventures (Australia)
Third Point Ventures
Toyota AI Ventures
Unilever Technology Ventures
UPS Strategic Enterprise Fund
Volvo Venture Capital
ZX Ventures (AB Inbev Venture Group) (backed by Anheuser-Busch InBev)
The objectives of venture capital firms vary significantly as do their approaches. As noted above some may invest with financial goals in mind while others invest for strategic purposes. A recent phenom is the creation of firms with a societal focus. Venture capital firms may focus on startup companies in different stages of development or from different industries. Some may operate locally only while others operate regionally, nationally or globally. Some may invest only in disruptive concepts while others invest in existing established companies which simply need support to grow. They invest in differing business models with differing growth curves, trajectories, and capital intensity. It’s very important that the entrepreneur fully understand the objectives and approach of the venture capital firm in order to utilize their time and resources as efficiently as possible.
Worldwide Venture Capital Trade Associations
African Venture Capital Association
African Venture Capital Association, (AVCANET) is an industry body which operates across Africa to promote and enable private equity on the continent.
Australian Private Equity & Venture Capital Association LTD
Australian Private Equity & Venture Capital Association LTD, (AVCAL) is an Australian association representing the private equity and venture capital industries in the country.
Canadian Venture Capital & Private Equity Association
Canadian Venture Capital & Private Equity Association, (CVCA) promotes the venture capital and private equity industries in Canada.
Digital Venture Capital Association
Digital Venture Capital Association, (DigitalVCA) is a non-profit which represents the venture capital and private equity industries globally with the objective of growing the digital and high growth technology sectors for the benefit of society.
European Venture Capital Association
European Venture Capital Association, (EVCA) seeks to shape the future direction of the European private equity and venture capital industries while promoting it to its stakeholders.
Hong Kong Venture Capital and Private Equity Association
Hong Kong Venture Capital and Private Equity Association, (HKVCA) was established in 1987 to promote and protect the interests of the venture capital industry in Hong Kong.
Indian Private Equity & Venture Capital Association
Indian Private Equity & Venture Capital Association, (IVCA) established in 1993 seeks to promote the development of the venture capital and private equity industry and to support entrepreneurial activity and innovation in India.
Latin American Venture Capital Association
Latin American Venture Capital Association, (LAVCA) is a non-profit association which is supports the growth of the private equity and venture capital industries in Latin America.
National Venture Capital Association, (NVCA)
National Venture Capital Association, (NVCA) advocates for the US venture capital community encouraging policies that encourage innovation and reward long-term investment.
New Zealand Venture Capital Association, (NZVCA)
New Zealand Venture Capital Association, (NZVCA) has, as its mission to ”develop a world-best venture capital and private equity environment for the benefit of investors and entrepreneurs in New Zealand.