Categories: AdviceMaintaining a Business

Venture Capital

We’re getting down to the bottom here at our small business industry series. Today’s letter is ‘V’ is for venture capital!

First of all, what is venture capital?

Venture capital businesses give funding to early, high-potential, start up businesses. These businesses make their money by owning equity in the companies that they invest in, which usually have a novel technology or business model in high technology industries, like IT or biotechnology. The typical venture capital investment occurs after the seed funding round as the first round of institutional capital to fund growth in the interest of generating a return through an eventual realization event (like a trade sale of the company).

Why is it an attractive industry?

Venture capital is attractive for new businesses without much operating history because they take the reigns when it comes to raising capital in public markets. The businesses that reach out to venture capital services are also typically too small or new to obtain a bank loan or complete a debt offering. Because venture capitalists assume a lot of the risk, the get a lot of control over company decisions, as well as a good portion of the company’s ownership.

Venture Capital is also a good thing because it’s associated with job creation. Out of the 2 million businesses formed in the US, 600-800 get venture capital funding. According to the National Venture Capital Association, 11% of private sector jobs come from venture-backed companies.

Do you want to get started today on your Venture Capital business? Have any questions? Give us a call at 1 877 692 6772 or visit us at www.mycorporation.com.

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.