Venture capital funds innovative companies by providing risk capital. It enables entrepreneurs to turn ideas and research into new products and services. Venture capital firms actively support companies over 5-8 years, through multiple funding rounds, as they grow from ideas into mature organizations. While most venture capital investments fail, successes like Intel, Microsoft, and Google that receive venture funding go on to create thousands of jobs and drive innovation. Venture capital has been critical to supporting entrepreneurship in the US and enabling the creation of many innovative technology companies.
For the narrated version with original fonts, visit:
http://venturecompany.com/videos/sovc
After the preeminent presentation on The State of Venture Capital has been viewed (bullet-by-bullet) by close to 11,000 people, we revised The State of Venture Capital, narrated and updated it with the latest findings from 2012.
For the narrated version with original fonts, visit:
http://venturecompany.com/videos/sovc
After the preeminent presentation on The State of Venture Capital has been viewed (bullet-by-bullet) by close to 11,000 people, we revised The State of Venture Capital, narrated and updated it with the latest findings from 2012.
A leading venture capital company in India prepared by Abhijith Rajasekharanabhijith rs
A leading venture capital company in India prepared by Abhijith Rajasekharan from Lourdes Matha College of Science and Technology (LMCST) Kuttichal Trivandrum, kerala
How to Prepare Your Startup for Venture Capital Investmentideatoipo
Getting venture capital funding is the ultimate yet often elusive goal of many Silicon Valley startups. Venture capital funding dramatically improves a startup's chances of having a big IPO or buy out exit. Most startups at their inception have the hope, if not the expectation, that they will eventually receive venture capital funding.
In the current environment, venture capital funding has become more competitive, but it is still available. This presentation will cover what a startup should do to prepare for venture funding, what essential steps to take, what venture capitalists expect and how to avoid venture capital deal breakers.
New Income Streams - Innovation and the ceo by iptiumStephen Harris
Increasing profits through innovation and brand leveraging . Brand licensing is a multi billion dollar industry. As a CEO if you understand how to market your brand through the application of your intellectual property you will increase your profits
Angle paisa | Business Start Up FundingAngle Paisa
ANGLE PAISA started operations in July 2010 in collaboration with some of its counterparts in US and local investors by working on projects in the real estate sector and websites. It later felt the need of expanding into the Start Up Funding market and reaching out to a larger pool of investors and public at large for inviting ideas and contributing funds.
Ownership Structure & Venture Capital-B.V.RaghunandanSVS College
Operations of venture capital and private equity and their relevance to Indian economy,as delivered by B.V.Raghunandan in a guest lecture to MBA students of St.Josaeph's Engineering College at Vamanjoor, Mangalore Dt., Karnataka state in India on April 4, 2008
A leading venture capital company in India prepared by Abhijith Rajasekharanabhijith rs
A leading venture capital company in India prepared by Abhijith Rajasekharan from Lourdes Matha College of Science and Technology (LMCST) Kuttichal Trivandrum, kerala
How to Prepare Your Startup for Venture Capital Investmentideatoipo
Getting venture capital funding is the ultimate yet often elusive goal of many Silicon Valley startups. Venture capital funding dramatically improves a startup's chances of having a big IPO or buy out exit. Most startups at their inception have the hope, if not the expectation, that they will eventually receive venture capital funding.
In the current environment, venture capital funding has become more competitive, but it is still available. This presentation will cover what a startup should do to prepare for venture funding, what essential steps to take, what venture capitalists expect and how to avoid venture capital deal breakers.
New Income Streams - Innovation and the ceo by iptiumStephen Harris
Increasing profits through innovation and brand leveraging . Brand licensing is a multi billion dollar industry. As a CEO if you understand how to market your brand through the application of your intellectual property you will increase your profits
Angle paisa | Business Start Up FundingAngle Paisa
ANGLE PAISA started operations in July 2010 in collaboration with some of its counterparts in US and local investors by working on projects in the real estate sector and websites. It later felt the need of expanding into the Start Up Funding market and reaching out to a larger pool of investors and public at large for inviting ideas and contributing funds.
Ownership Structure & Venture Capital-B.V.RaghunandanSVS College
Operations of venture capital and private equity and their relevance to Indian economy,as delivered by B.V.Raghunandan in a guest lecture to MBA students of St.Josaeph's Engineering College at Vamanjoor, Mangalore Dt., Karnataka state in India on April 4, 2008
A slimmed down version of a recent talk I gave on Value-driven Marketing. This talk highlighted the challenges of differentation in strategy, using Value-Driven Marketing.
Standards And Documentation Authoritative Technology WebsitesLloyd_Wedes
Database was created by Lloyd Wedes, MLS. Director of Library Services at DeVry University Library, Houston. Funding for this individual project was made possible through The Institute of Electrical and Electronics Engineers (IEEE). The database is primarily in English with some German and French. Special thanks to Amin Karim and Diane Gaylor, both of DeVry University. Comments can be sent to Lloyd Wedes. To view all keywords, click on "All Tags" on the right side of the Standards database page.
Stanford VC Unlocked 2023 - Top 8 Mistakes First-Time Fund Managers Make by E...Edith Yeung
Edith Yeung from Race Capital presents Top 8 Mistakes First-Time Fund Managers Make at Stanford VC Unlocked 2023 .
Hope none of us would become Zombie VC 🧟♂️ 🧟♀️ avoid the following mistakes some emerging fund managers make:
- Build a fund based on short term trends
- Mismatch between fund strategy
- Misalignment of incentives and responsibilities
- Excessive optimism in fundraising
- Partner with the wrong LPs
- Failure to execute stated strategy
- Inadequate communication with LPs
- Delayed exits when warranted
An Introduction to the World of Venture CapitalScott Tominaga
When startups need funding, venture capital is one option they might consider. Getting funding from a VC firm can offer certain advantages to new businesses that may not be able to get approved for traditional loans. Thanks to the rise of crowdfunding, it’s now becoming decidedly more mainstream.
En este taller se ofrecieron conceptos básicos sobre innovación, emprendimiento y modelos de negocio. Se presentaron casos y ejemplos. Se realizaron dinámicas para alinear talentos/herramientas e ideas de negocio. Se ofrecieron los elementos y recomendaciones clave para validar un negocio y determinar oportunidades en el mercado.
Taller - Modelos de negocio y Entorno emprendedorCarlos H. Brandt
Este taller desarrollado para el Programa de Apoyo al Emprendedor que promueve la Universidad Corporativa de SIGO en la Isla de Margarita, está enfocado en identificar los talentos de los participantes, sus ideas de negocio, la viabilidad y determinación de sus modelos de negocio, así como los recursos y oportunidades que ofrece el mercado.
Se ofrecieron conceptos básicos sobre mercadeo, innovación y redes sociales, así como herramientas de análisis estratégico y modelos de comunicación de negocios. Este taller fue dictado por @chbrandt La presentación no tiene videos, animaciones y audios, de manera que pueda ser compartida.
Artículo especial salido en @AmericaEconomia escrito por @Tamara_Esther sobre la moda 2.0 y las tendencias en los emprendedores del fashion y el lujo en el uso de internet
Esta presentación fue realizada el 23 de agosto en el Eurobuilding, en el marco del evento Atrévete a Emprender. Esta presentación se enfoca en información, datos y estadísticas, además de tips y consejos para formarse adecuadamente en el proceso emprendedor.
Programa iniciativa empresarial abril junio 2012Carlos H. Brandt
Este es el Programa de la materia Iniciativa Empresarial / Sección - GER0707-AN del MBA del IESA. Son las reglas de juego para culminar satisfactoriamente el curso.
Charla sobre el emprendimiento a la Venezolana. realizada el 8 de febrero de 2012, a las 1pm en el Conjunto de Auditorios de la USB dentro del ciclo EMPRENDEDOR: Hecho en Venezuela. Organizado por la Asociación de Jóvenes Empresarios de la USB
Light version of the working portfolio of Maria Luisa Contreras, branding expert and Graphic Designer, who's been working with me for more than 7 years, as an active consultant for start-ups and entrepreneurs.
1. VENTURE CAPITAL 101:
What is Venture Capital?
V
enture capital has enabled the United States to support its entrepreneur-
ial talent and appetite by turning ideas and basic science into products
and services that are the envy of the world. Venture capital funds and
builds companies from the simplest form – perhaps just the entrepreneur and
an idea expressed as a business plan – to freestanding, mature organizations.
Risk Capital for Business
Venture capital firms are professional, institutional managers of risk capital that
enables and supports the most innovative and promising companies. This money
funds new ideas that could not be financed with traditional bank financing, that
threaten established products and services in a corporation, and that typically
require five to eight years to be launched.
Venture Capital Backed Companies
Known for Innovative Technology and Products
2000 and 2006 Employment
Company 2000 2006 # Change
Intel Corporation 86,100 103,200 17,100
Microsoft 39,100 71,000 31,900
Medtronic, Inc. 21,490 36,000 14,510
Apple Inc. 8,568 17,100 8,532
Google — 10,600 10,600
Source: Hoover’s
Venture capital is quite unique as an institutional investor asset class. When an
investment is made in a company, it is an equity investment in a company whose
stock is essentially illiquid and worthless until a company matures five to eight
8 Venture Impact—The Economic Importance of Venture Capital Backed Companies to the U.S. Economy
2. years down the road. Follow-on investment provides additional funding as the
company grows. These “rounds,” typically occurring every year or two, are also
equity investment, with the shares allocated among the investors and manage-
ment team based on an agreed “valuation.” But, unless a company is acquired or
goes public, there is little actual value. Venture capital is a long-term investment.
Venture Capital Backed Companies
Known for Innovative Business Models
2000 and 2006 Employment
Company 2000 2006 # Change
The Home Depot 201,000 345,000 144,000
Starbucks Corporation 47,000 116,700 69,700
Staples 49,993 68,500 18,507
Whole Foods Market, Inc. 18,500 38,600 20,100
PetSmart, Inc. 19,825 30,300 10,475
eBay 1,927 12,800 10,873
Source: Hoover’s
Venture capital firms are More Than Money
professional, institutional The U.S. venture industry provides the capital to create some of the most innova-
tive and successful companies. But venture capital is more than money. Venture
managers of risk capital that capital partners become actively engaged with a company, typically taking a
board seat. With a startup, daily interaction with the management team is com-
enables and supports the most mon. This limits the number of startups in which any one fund can invest. Few
entrepreneurs approaching venture capital firms for money are aware that they
innovative and promising essentially are asking for 1/6 of a person!
companies. Yet that active engagement is critical to the success of the fledgling company.
Many one- and two-person companies have received funding but no one- or two-
person company has ever gone public! Along the way, talent must be recruited
What Entrepreneurs Are Really Asking For!
An early stage venture capitalist
sitting on six company boards has
a huge workload.
Venture Impact—The Economic Importance of Venture Capital Backed Companies to the U.S. Economy 9
3. and the company scaled up. Ask any venture capitalist who has had an ultra-
successful investment and he or she will tell you that the company that broke
through the gravity evolved from the original business plan concept with the
careful input of an experienced hand.
Deal Flows — Where The Buys Are
For every 100 business plans that come to a
venture capital firm for funding, usually only 10
The Business Plan Funnel
or so get a serious look, and only one ends up
being funded. The venture capital firm looks at
the management team, the concept, the market-
place, fit to the fund’s objectives, the value-added
potential for the firm, and the capital needed 100 business plans come in
to build a successful business. A busy venture 100
capital professional’s most precious asset is time.
These days, a business concept needs to address
world markets, have superb scalability, be made
successful in a reasonable timeframe, and be
truly innovative. A concept that promises a 10
or 20 percent improvement on something that
already exists is not likely to get a close look.
Many technologies currently under development 10 are a good fit and promising —
by venture capital firms are truly disruptive they get a close look
technologies that do not lend themselves to being 10
embraced by larger companies whose current
products could be cannibalized by this. Also,
with the increased emphasis on public company Extensive due diligence
quarterly results, many larger organizations tend
to reduce spending on research and development
and product development when things get tight.
Many talented teams have come to the venture 1
capital process when their projects were turned
1 gets funded
down by their companies.
Common Structure — Unique Results
While the legal and economic structures used to create a venture capital fund
are similar to those used by other alternative investment asset classes, venture
capital itself is unique. Typically, a venture capital firm will create a Limited
Partnership with the investors as LPs and the firm itself as the General Partner.
Each “fund,” or portfolio, is a separate partnership. A new fund is established
when the venture capital firm obtains necessary commitments from its investors,
say $100 million. The money is taken from investors as the investments are made.
Typically, an initial funding of a company will cause the venture fund to reserve
three or four times that first investment for follow-on financing. Over the next
three to eight or so years, the venture firm works with the founding entrepreneur
to grow the company. The payoff comes after the company is acquired or goes
public. Although the investor has high hopes for any company getting funded,
only one in six ever goes public and one in three is acquired.
10 Venture Impact—The Economic Importance of Venture Capital Backed Companies to the U.S. Economy
4. Investors in Venture Capital Funds
Finance & Insurance 25%
Private &
Public Pension Funds
42%
Endowments
& Foundations
21%
Corporations Operating
Individuals & Families Funds (not pension)
10% 2%
Source: 2004 NVCA Yearbook prepared by Thomson Financial using 2003 data
Economic Alignment of all Stakeholders —
An American Success Story
Venture capital is rare among asset classes in that success is truly shared. It is
The Exit Funnel — not driven by quick returns or transaction fees. Economic success occurs when
Outcomes of the 11,686 Companies the stock price increases above the purchase price. When a company is success-
First Funded 1991 to 2000 ful and has a strong public stock offering, or is acquired, the stock price of the
company reflects its success. The entrepreneur benefits from appreciated stock
and stock options. The rank and file employees throughout the organization
historically also do well with their stock options. The venture capital fund and its
Went/Going Public 14%
Acquired 33% investors split the capital gains per a pre-agreed formula. Many college endow-
ments, pension funds, charities, individuals, and corporations have benefited far
beyond the risk-adjusted returns of the public markets.
What’s Ahead
Much of venture capital’s success has come from the entrepreneurial spirit
pervasive in the American culture, financial recognition of success, access to
good science, and fair and open capital markets. It is dependent upon a good
*Still Private or flow of science, motivated entrepreneurs, protection of intellectual property, and
Unknown 35% Known Failed 18% a skilled workforce.
The nascent deployment of venture capital in other countries is gated by a
country’s or region’s cultural fit, tolerance for failure, services infrastructure that
* Of these, most have quietly failed supports developing companies, intellectual property protection, efficient capital
markets, and the willingness of big business to purchase from small companies.
Venture Impact—The Economic Importance of Venture Capital Backed Companies to the U.S. Economy 11