1. Venture capital firms raise capital to finance new companies, take equity stakes and board positions, add value through participation, and seek higher returns through liquidity events like IPOs or acquisitions. 2. In 2006, $25.8 billion was invested in the US through 2,454 deals, averaging $10.5 million per deal. Information technology received the majority of investments. 3. Venture capital has significantly grown as an asset class since 1980 and has expanded internationally to places like India and China.