Venture Capital
Release time:
2022-10-19
Source:
FibreSpeare CO., LTD.
Venture capital (VC) is a specialized form of financing, available to a minority of entrepreneurs in attractive industries. Many venture capital success stories have become household names—Amazon, Cisco, Compaq, eBay, Federal Express, Intel, Lotus, Netscape, Sun Microsystems, and Yahoo all received VC funding. Venture capital is not exclusive, however, to the technology sector. The growth of Staples, Starbucks, and TCBY—all ‘brick and mortar’ retailers with innovative business models—was also fueled by venture capital investment. In the words of VC researchers Paul Gompers & Josh Lerner (2001b p. 83,):
No matter how we look at the numbers, venture capital clearly serves as an important source for economic development, wealth and job creation, and innovation. This unique form of investing brightens entrepreneurial companies’ prospects by relieving all-too-common capital constraints. Venture-backed firms grow more quickly and create far more value than nonventure-backed firms. Similarly, venture capital generates a tremendous number of jobs and boosts corporate profits, earnings, and workforce quality. Finally, venture capital exerts a powerful effect on innovation.
We invest in young, fast-growing companies worldwide.