Venture Capital Financing

Essay # 116680

Business > Finance, Investment and Banking

A discussion of the history and current prospects of venture capital financing.

1,411 words () | 5 sources | MLA | 2009 United States

Paper Summary:

This paper provides a brief history of the venture capital business in the U.S., showing how it has been associated with technological enterprise from the very beginning. The writer explains how venture capital funding works by procuring financing through finding investors who are seeking to invest money in non-stock ventures that are more risky but have a much higher potential reward yield. Since venture capitalists review venture requests on a case-by-case basis, the presentation of the request is the most essential consideration in venture capital acquisition. Keeping the presentation simple and to the point is key to obtaining venture capital.

From the Paper:

"As far as companies backed by venture capitalists, the first modern venture capital startup is thought to have been Fairchild Conductor in 1959, supported by Ventrock Associates. Before World War II, venture capital endeavors were considered to be the domain of wealthy families and wealthy business interests. A significant precursor to the venture capital it industry was the 1958 Business Investment Act, which enabled the government's Small Business Association to provide financing resources and guidance for small businesses looking to start up, thereby giving the American everyman the opportunity to start their own business, regardless of social or economic class. In effect, this gave rise to the modern American ideal of the small business owner."

Sample of Sources Used:

Bartlett, Joseph. "What Is Venture Capital?" 2007: http://vcexperts.com/vce/library/encyclopedia/documents_view.asp?document_id=15
"Venture Capital." 2007: http://pages.cashflowpro.com/diamoncapitalsolutions/venturecapital.html
"Venture Capital." 2007: http://en.wikipedia.org/wiki/Venture_capital
Venture Capital Industry Overview presentation for 1Q07, Dowjownes VentureSource based on data from Dow Jones VentureOne/Ernst&Young
Weeks, Katie. "Emphasize the milestones when pitching venture capitalists for cash: BIO conference panel has advice for entrepreneurs." San Diego Business Journal 28.20 (May 14, 2007): 3(1).