Venture capitalwikipedia
venture capitalventure capitalistventure capital firmventure capitalistsventure capital fundventureventure-capitalVCventure fundbusiness venture

Private equity

private equityprivate-equityequity
Venture capital (VC) is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both).
A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor.

Funding

fundingfinancingfunds
Venture capital (VC) is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both).
Sources of funding include credit, venture capital, donations, grants, savings, subsidies, and taxes.

Georges Doriot

Georges F. DoriotG. F. Doriot
Georges Doriot, the "father of venture capitalism" (and former assistant dean of Harvard Business School), founded the graduate business school INSEAD in 1957.
Georges Frédéric Doriot (September 24, 1899 – June 1987) was a French-born American venture capitalist.

J.H. Whitney & Company

Only after 1945 did "true" private equity investments begin to emerge, notably with the founding of the first two venture capital firms in 1946: American Research and Development Corporation (ARDC) and J.H. Whitney & Company. John Hay Whitney (1904–1982) and his partner Benno Schmidt (1913–1999) founded J.H. Whitney & Company in 1946. Even industry founders J.H. Whitney & Company and Warburg Pincus began to transition toward leveraged buyouts and growth capital investments.
J.H. Whitney & Company is a venture capital firm in the U.S., founded in 1946 by John Hay Whitney and his partner Benno Schmidt.

American Research and Development Corporation

American Research & Development
Only after 1945 did "true" private equity investments begin to emerge, notably with the founding of the first two venture capital firms in 1946: American Research and Development Corporation (ARDC) and J.H. Whitney & Company.
American Research and Development Corporation (ARDC) was a venture capital and private equity firm founded in 1946 by Georges Doriot, the former dean of Harvard Business School and "father of venture capitalism", with Ralph Flanders and Karl Compton (former president of MIT).

Venrock

Venrock AssociatesRockefeller BrothersVenrock
It is commonly noted that the first venture-backed startup is Fairchild Semiconductor (which produced the first commercially practical integrated circuit), funded in 1959 by what would later become Venrock Associates.
Venrock, a compound of "Venture" and "Rockefeller", is a venture capital firm formed in 1969 to build upon the successful investing activities of the Rockefeller family that began in the late 1930s.

Startup company

startupstartup companystartups
Venture capital (VC) is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both).
Anyone can be a co-founder, and an existing company can also be a co-founder, but the most common co-founders are founder-CEOs, engineers, hackers, web developers, web designers and others involved in the ground level of a new, often venture.

Benno C. Schmidt Sr.

Benno SchmidtBenno C. Schmidt
John Hay Whitney (1904–1982) and his partner Benno Schmidt (1913–1999) founded J.H. Whitney & Company in 1946.
Benno Charles Schmidt Sr. (January 10, 1913 – October 21, 1999) was an American lawyer and venture capitalist who was active in New York City civic affairs and played an important role in the initiation of the War on Cancer.

Kleiner Perkins

Kleiner PerkinsKPCBKleiner Perkins Caufield & Byers
The growth of the venture capital industry was fueled by the emergence of the independent investment firms on Sand Hill Road, beginning with Kleiner Perkins and Sequoia Capital in 1972.
Kleiner Perkins, formerly Kleiner Perkins Caufield & Byers (KPCB), is an American venture capital firm headquartered on Sand Hill Road in Menlo Park in Silicon Valley.

Greylock Partners

GreylockGreylock Ventures
Former employees of ARDC went on to establish several prominent venture-capital firms including Greylock Partners (founded in 1965 by Charlie Waite and Bill Elfers) and Morgan, Holland Ventures, the predecessor of Flagship Ventures (founded in 1982 by James Morgan).
Greylock Partners is one of the oldest venture capital firms, founded in 1965, with committed capital of over $3.5 billion under management.

Sequoia Capital

SequoiaSequoia CapitalSequoia Ventures, Inc.
The growth of the venture capital industry was fueled by the emergence of the independent investment firms on Sand Hill Road, beginning with Kleiner Perkins and Sequoia Capital in 1972.
Sequoia Capital is an American venture capital firm.

Angel investor

angel investorangel investorsangel investment
In addition to angel investing, equity crowdfunding and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering.
Angels typically invest their own funds, unlike venture capitalists who manage the pooled money of others in a professionally managed fund.

Silicon Valley

Silicon ValleySilicon Valley, CaliforniaSan Jose
The late 1990s were a boom time for venture capital, as firms on Sand Hill Road in Menlo Park and Silicon Valley benefited from a huge surge of interest in the nascent Internet and other computer technologies.
Silicon Valley also accounts for one-third of all of the venture capital investment in the United States, which has helped it to become a leading hub and startup ecosystem for high-tech innovation and scientific development.

Laurance Rockefeller

LauranceLaurance S. RockefellerLaurance Spelman Rockefeller
In 1938, Laurance S. Rockefeller helped finance the creation of both Eastern Air Lines and Douglas Aircraft, and the Rockefeller family had vast holdings in a variety of companies.
He was a leading figure in the pioneering field of venture capital, which began as a joint partnership with all five brothers and their only sister, Babs, in 1946.

Private equity firm

private equity firmprivate equity firmsprivate equity group
Private equity firms organized limited partnerships to hold investments in which the investment professionals served as general partner and the investors, who were passive limited partners, put up the capital.
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.

Sand Hill Road

A street in Menlo Park, California
The growth of the venture capital industry was fueled by the emergence of the independent investment firms on Sand Hill Road, beginning with Kleiner Perkins and Sequoia Capital in 1972. The late 1990s were a boom time for venture capital, as firms on Sand Hill Road in Menlo Park and Silicon Valley benefited from a huge surge of interest in the nascent Internet and other computer technologies.
Sand Hill Road, often shortened to just "Sand Hill", is an arterial road in western Silicon Valley, California, running through Palo Alto, Menlo Park, and Woodside, notable for its concentration of venture capital companies.

Dot-com bubble

dot-com bubbledot-com boomdot-com bust
Yale School of Management Professor Andrew Metrick refers to these first 15 years of the modern venture capital industry beginning in 1980 as the "pre-boom period" in anticipation of the boom that would begin in 1995 and last through the bursting of the Internet bubble in 2000.
Venture capital was easy to raise.

Operating partner

operating partner
Venture capitalists with an operational background (operating partner) tend to be former founders or executives of companies similar to those which the partnership finances or will have served as management consultants.
An operating partner is a term used by venture capital (VC) and private equity (PE) firms to describe a role dedicated to working with privately held companies to increase value.

Venture round

venture roundSeries BSeries C
There are typically six stages of venture round financing offered in Venture Capital, that roughly correspond to these stages of a company's development.
A venture round is a type of funding round used for venture capital financing, by which startup companies obtain investment, generally from venture capitalists and other institutional investors.

William Henry Draper III

Bill DraperWilliam H. Draper IIIWilliam Draper
An early West Coast venture capital company was Draper and Johnson Investment Company, formed in 1962 by William Henry Draper III and Franklin P. Johnson, Jr. In 1965, Sutter Hill Ventures acquired the portfolio of Draper and Johnson as a founding action.
In 1959, Draper left Chicago to work as an associate at his father's newly formed firm, Draper, Gaither & Anderson, the first venture capital company on the West Coast.

Chemical Bank

Chemical BankChemical Bank & Trust Co.Chemical Corn Exchange Bank
Additionally, venture capital units within Chemical Bank and Continental Illinois National Bank, among others, began shifting their focus from funding early stage companies toward investments in more mature companies.

Growth capital

growth capitalgrowth equitygrowth capital firm
Even industry founders J.H. Whitney & Company and Warburg Pincus began to transition toward leveraged buyouts and growth capital investments.
These companies are likely to be more mature than venture capital funded companies, able to generate revenue and profit but unable to generate sufficient cash to fund major expansions, acquisitions or other investments.

Insurance

insuranceinsurance companyinsurance companies
This constituency comprises both high-net-worth individuals and institutions with large amounts of available capital, such as state and private pension funds, university financial endowments, foundations, insurance companies, and pooled investment vehicles, called funds of funds.
At the same time, the first insurance schemes for the underwriting of business ventures became available.

Venture debt

venture debt
Between the first round and the fourth round, venture-backed companies may also seek to take venture debt.
Venture debt can complement venture capital and provide value to fast growing companies and their investors.

Series A round

Series ASeries A fundingseries A round
The first round of institutional venture capital to fund growth is called the Series A round.
Because there are no public exchanges listing their securities, private companies meet venture capital firms and other private equity investors in several ways, including warm referrals from the investors' trusted sources and other business contacts; investor conferences and demo days where companies pitch directly to investor groups.