Difference between revisions of "Venture capital"
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Venture capital (VC) is what private investors inject into a single business venture, usually a start-up or early-stage private company, whereas growth [[capital]] is typically invested in established, publicly-traded companies via the [[capital markets]]. Most venture capitalists are either private partnerships or | Venture capital (VC) is what private investors inject into a single business venture, usually a start-up or early-stage private company, whereas growth [[capital]] is typically invested in established, publicly-traded companies via the [[capital markets]]. Most venture capitalists are either private partnerships or corporations funded by private investment. | ||
== Private pools == | == Private pools == | ||
Latest revision as of 17:36, 19 December 2013
Venture capital (VC) is what private investors inject into a single business venture, usually a start-up or early-stage private company, whereas growth capital is typically invested in established, publicly-traded companies via the capital markets. Most venture capitalists are either private partnerships or corporations funded by private investment.
Private pools[edit]
VC industry group the National Venture Capital Association (NVCA)[1] claims that companies backed by venture capital now account for more than $2 trillion in GDP and over 10 million U.S. jobs.[2] The NVCA represents almost 500 venture-capital firms in the U.S. and recently celebrated its 35th anniversary.
The NVCA describes most venture-capitalist firms as pools of private-equity capital organized as a limited partnership that invest in potentially high-growth young companies with a time horizon of five to seven years.[3] Investors can include private individuals, trusts and institutional investors such as pension funds. Many also become involved in the management, planning and marketing of their new venture.