|History of private equity|
and venture capital
|(origins of modern private equity)|
|(leveraged buyout boom)|
|(leveraged buyout and the venture capital bubble)|
|(dot-com bubble to the credit crunch)|
Venture capital (VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue, scale of operations, etc). Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. Because startups face high uncertainty, VC investments have high rates of failure. The start-ups are usually based on an innovative technology or business model and they are usually from the high technology industries, such as information technology (IT), clean technology or biotechnology.
The typical venture capital investment occurs after an initial "seed funding" round. The first round of institutional venture capital to fund growth is called the Series A round. Venture capitalists provide this financing in the interest of generating a return through an eventual "exit" event, such as the company selling shares to the public for the first time in an initial public offering (IPO), or disposal of shares happening via a merger, via a sale to another entity such as a financial buyer in the private equity secondary market or via a sale to a trading company such as a competitor.
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. In exchange for the high risk that venture capitalists assume by investing in smaller and early-stage companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the companies' ownership (and consequently value). Start-ups like Uber, Airbnb, Flipkart, Xiaomi & Didi Chuxing are highly valued startups, commonly known as "Unicorns", where venture capitalists contribute more than financing to these early-stage firms; they also often provide strategic advice to the firm's executives on its business model and marketing strategies.
Venture capital is also a way in which the private and public sectors can construct an institution that systematically creates business networks for the new firms and industries so that they can progress and develop. This institution helps identify promising new firms and provide them with finance, technical expertise, mentoring, talent acquisition, strategic partnership, marketing "know-how", and business models. Once integrated into the business network, these firms are more likely to succeed, as they become "nodes" in the search networks for designing and building products in their domain. However, venture capitalists' decisions are often biased, exhibiting for instance overconfidence and illusion of control, much like entrepreneurial decisions in general.
Origins of modern venture capital
Before World War II (1939–1945) venture capital was primarily the domain of wealthy individuals and families. JP Morgan, the Wallenbergs, the Vanderbilts, the Whitneys, the Rockefellers, and the Warburgs were notable investors in private companies. 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. Eric M. Warburg founded E.M. Warburg & Co. in 1938, which would ultimately become Warburg Pincus, with investments in both leveraged buyouts and venture capital. The Wallenberg family started Investor AB in 1916 in Sweden and were early investors in several Swedish companies such as ABB, Atlas Copco, and Ericsson in the first half of the 20th century. (History of venture capital)
Only after 1945 did "true" venture capital investment firms begin to emerge, notably with the founding of American Research and Development Corporation (ARDC) and J.H. Whitney & Company in 1946.
Georges Doriot, the "father of venture capitalism", along with Ralph Flanders and Karl Compton (former president of MIT) founded ARDC in 1946 to encourage private-sector investment in businesses run by soldiers returning from World War II. ARDC became the first institutional private-equity investment firm to raise capital from sources other than wealthy families. Unlike most present-day venture capital firms, ARDC was a publicly-traded company. ARDC's most successful investment was its 1957 funding of Digital Equipment Corporation (DEC), which would later be valued at more than $355 million after its initial public offering in 1968. This represented a return of over 1200 times its investment and an annualized rate of return of 101% to ARDC.
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; Morgan, Holland Ventures, the predecessor of Flagship Ventures, founded in 1982 by James Morgan; Fidelity Ventures, now Volition Capital, founded in 1969 by Henry Hoagland; and Charles River Ventures, founded in 1970 by Richard Burnes. ARDC continued investing until 1971, when Doriot retired. In 1972 Doriot merged ARDC with Textron after having invested in over 150 companies.
John Hay Whitney (1904–1982) and his partner Benno Schmidt (1913–1999) founded J.H. Whitney & Company in 1946. Whitney had been investing since the 1930s, founding Pioneer Pictures in 1933 and acquiring a 15% interest in Technicolor Corporation with his cousin Cornelius Vanderbilt Whitney. Florida Foods Corporation proved Whitney's most famous investment. The company developed an innovative method for delivering nutrition to American soldiers, later known as Minute Maid orange juice and was sold to The Coca-Cola Company in 1960. J.H. Whitney & Company continued to make investments in leveraged buyout transactions and raised $750 million for its sixth institutional private-equity fund in 2005.
Early venture capital and the growth of Silicon Valley
One of the first steps toward a professionally managed venture capital industry was the passage of the Small Business Investment Act of 1958. The 1958 Act officially allowed the U.S. Small Business Administration (SBA) to license private "Small Business Investment Companies" (SBICs) to help the financing and management of the small entrepreneurial businesses in the United States. The Small Business Investment Act of 1958 provided tax breaks that helped contribute to the rise of private-equity firms.
During the 1950s, putting a venture capital deal together may have required the help of two or three other organizations to complete the transaction. It was a business that was growing very rapidly, and as the business grew, the transactions grew exponentially.
During the 1960s and 1970s, venture capital firms focused their investment activity primarily on starting and expanding companies. More often than not, these companies were exploiting breakthroughs in electronic, medical, or data-processing technology. As a result, venture capital came to be almost synonymous with technology finance. 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. Bill Draper and Paul Wythes were the founders, and Pitch Johnson formed Asset Management Company at that time.
It was also in the 1960s that the common form of private-equity fund, still in use today, emerged. 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. The compensation structure, still in use today, also emerged with limited partners paying an annual management fee of 1.0–2.5% and a carried interest typically representing up to 20% of the profits of the partnership.
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. Located in Menlo Park, CA, Kleiner Perkins, Sequoia and later venture capital firms would have access to the many semiconductor companies based in the Santa Clara Valley as well as early computer firms using their devices and programming and service companies.[note 1]
Throughout the 1970s, a group of private-equity firms, focused primarily on venture capital investments, would be founded that would become the model for later leveraged buyout and venture capital investment firms. In 1973, with the number of new venture capital firms increasing, leading venture capitalists formed the National Venture Capital Association (NVCA). The NVCA was to serve as the industry trade group for the venture capital industry. Venture capital firms suffered a temporary downturn in 1974, when the stock market crashed and investors were naturally wary of this new kind of investment fund.
It was not until 1978 that venture capital experienced its first major fundraising year, as the industry raised approximately $750 million. With the passage of the Employee Retirement Income Security Act (ERISA) in 1974, corporate pension funds were prohibited from holding certain risky investments including many investments in privately held companies. In 1978, the US Labor Department relaxed certain restrictions of the ERISA, under the "prudent man rule"[note 2], thus allowing corporate pension funds to invest in the asset class and providing a major source of capital available to venture capitalists.
The public successes of the venture capital industry in the 1970s and early 1980s (e.g., Digital Equipment Corporation, Apple Inc., Genentech) gave rise to a major proliferation of venture capital investment firms. From just a few dozen firms at the start of the decade, there were over 650 firms by the end of the 1980s, each searching for the next major "home run". The number of firms multiplied, and the capital managed by these firms increased from $3 billion to $31 billion over the course of the decade.
The growth of the industry was hampered by sharply declining returns, and certain venture firms began posting losses for the first time. In addition to the increased competition among firms, several other factors affected returns. The market for initial public offerings cooled in the mid-1980s before collapsing after the stock market crash in 1987, and foreign corporations, particularly from Japan and Korea, flooded early-stage companies with capital.
In response to the changing conditions, corporations that had sponsored in-house venture investment arms, including General Electric and Paine Webber either sold off or closed these venture capital units. 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. Even industry founders J.H. Whitney & Company and Warburg Pincus began to transition toward leveraged buyouts and growth capital investments.
Venture capital boom and the Internet Bubble
By the end of the 1980s, venture capital returns were relatively low, particularly in comparison with their emerging leveraged buyout cousins, due in part to the competition for hot startups, excess supply of IPOs and the inexperience of many venture capital fund managers. Growth in the venture capital industry remained limited throughout the 1980s and the first half of the 1990s, increasing from $3 billion in 1983 to just over $4 billion more than a decade later in 1994.
The advent of the World Wide Web in the early 1990s reinvigorated venture capital as investors saw companies with huge potential being formed. Netscape and Amazon (company) were founded in 1994, and Yahoo! in 1995. All were funded by venture capital. Internet IPOs—AOL in 1992; Netcom in 1994; UUNet, Spyglass and Netscape in 1995; Lycos, Excite, Yahoo!, CompuServe, Infoseek, C/NET, and E*Trade in 1996; and Amazon, ONSALE, Go2Net, N2K, NextLink, and SportsLine in 1997—generated enormous returns for their venture capital investors. These returns, and the performance of the companies post-IPO, caused a rush of money into venture capital, increasing the number of venture capital funds raised from about 40 in 1991 to more than 400 in 2000, and the amount of money committed to the sector from $1.5 billion in 1991 to more than $90 billion in 2000.
Private equity crash
The Nasdaq crash and technology slump that started in March 2000 shook virtually the entire venture capital industry as valuations for startup technology companies collapsed. Over the next two years, many venture firms had been forced to write-off large proportions of their investments, and many funds were significantly "under water" (the values of the fund's investments were below the amount of capital invested). Venture capital investors sought to reduce the size of commitments they had made to venture capital funds, and, in numerous instances, investors sought to unload existing commitments for cents on the dollar in the secondary market. By mid-2003, the venture capital industry had shriveled to about half its 2001 capacity. Nevertheless, PricewaterhouseCoopers' MoneyTree Survey shows that total venture capital investments held steady at 2003 levels through the second quarter of 2005.
Although the post-boom years represent just a small fraction of the peak levels of venture investment reached in 2000, they still represent an increase over the levels of investment from 1980 through 1995. As a percentage of GDP, venture investment was 0.058% in 1994, peaked at 1.087% (nearly 19 times the 1994 level) in 2000 and ranged from 0.164% to 0.182% in 2003 and 2004. The revival of an Internet-driven environment in 2004 through 2007 helped to revive the venture capital environment. However, as a percentage of the overall private-equity market, venture capital has still not reached its mid-1990s level, let alone its peak in 2000.
Venture capital funds, which were responsible for much of the fundraising volume in 2000 (the height of the dot-com bubble), raised only $25.1 billion in 2006, a 2% decline from 2005 and a significant decline from its peak.
Obtaining venture capital is substantially different from raising debt or a loan. Lenders have a legal right to interest on a loan and repayment of the capital irrespective of the success or failure of a business. Venture capital is invested in exchange for an equity stake in the business. The return of the venture capitalist as a shareholder depends on the growth and profitability of the business. This return is generally earned when the venture capitalist "exits" by selling its shareholdings when the business is sold to another owner.
Venture capitalists are typically very selective in deciding what to invest in, with a Stanford survey of venture capitalists revealing that 100 companies were considered for every company receiving financing.  Ventures receiving financing must demonstrate an excellent management team, a large potential market, and most importantly high growth potential, as only such opportunities are likely capable of providing financial returns and a successful exit within the required time frame (typically 3–7 years) that venture capitalists expect.
Because investments are illiquid and require the extended time frame to harvest, venture capitalists are expected to carry out detailed due diligence prior to investment. Venture capitalists also are expected to nurture the companies in which they invest, in order to increase the likelihood of reaching an IPO stage when valuations are favourable. Venture capitalists typically assist at four stages in the company's development:
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 symposia; and summits where companies pitch directly to investor groups in face-to-face meetings, including a variant known as "Speed Venturing", which is akin to speed-dating for capital, where the investor decides within 10 minutes whether he wants a follow-up meeting. In addition, some new private online networks are emerging to provide additional opportunities for meeting investors.
This need for high returns makes venture funding an expensive capital source for companies, and most suitable for businesses having large up-front capital requirements, which cannot be financed by cheaper alternatives such as debt. That is most commonly the case for intangible assets such as software, and other intellectual property, whose value is unproven. In turn, this explains why venture capital is most prevalent in the fast-growing technology and life sciences or biotechnology fields.
If a company does have the qualities venture capitalists seek including a solid business plan, a good management team, investment and passion from the founders, a good potential to exit the investment before the end of their funding cycle, and target minimum returns in excess of 40% per year, it will find it easier to raise venture capital.
- Seed funding: The earliest round of financing needed to prove a new idea, often provided by angel investors. Equity crowdfunding is also emerging as an option for seed funding.
- Start-up: Early stage firms that need funding for expenses associated with marketing and product development
- Growth (Series A round): Early sales and manufacturing funds. This is typically where VCs come in. Series A can be thought of as the first institutional round. Subsequent investment rounds are called Series B, Series C and so on. This is where most companies will have the most growth.
- Second-Round: Working capital for early stage companies that are selling product, but not yet turning a profit. This can also be called Series B round and so on.
- Expansion: Also called Mezzanine financing, this is expansion money for a newly profitable company
- Exit of venture capitalist: VCs can exit through secondary sale or an IPO or an acquisition. Early stage VCs may exit in later rounds when new investors (VCs or Private-Equity investors) buy the shares of existing investors. Sometimes a company very close to an IPO may allow some VCs to exit and instead new investors may come in hoping to profit from the IPO.
- Bridge Financing is when a startup seeks funding in between full VC rounds. The objective is to raise a smaller amount of money instead of a full round and usually the existing investors participate.
Firms and funds
This section does not cite any sources. (January 2021) (Learn how and when to remove this template message)
A venture capitalist, or sometimes simply capitalist, is a person who makes capital investments in companies in exchange for an equity stake. The venture capitalist is often expected to bring managerial and technical expertise, as well as capital, to their investments. A venture capital fund refers to a pooled investment vehicle (in the United States, often an LP or LLC) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans. These funds are typically managed by a venture capital firm, which often employs individuals with technology backgrounds (scientists, researchers), business training and/or deep industry experience.
A core skill within VC is the ability to identify novel or disruptive technologies that have the potential to generate high commercial returns at an early stage. By definition, VCs also take a role in managing entrepreneurial companies at an early stage, thus adding skills as well as capital, thereby differentiating VC from buy-out private equity, which typically invest in companies with proven revenue, and thereby potentially realizing much higher rates of returns. Inherent in realizing abnormally high rates of returns is the risk of losing all of one's investment in a given startup company. As a consequence, most venture capital investments are done in a pool format, where several investors combine their investments into one large fund that invests in many different startup companies. By investing in the pool format, the investors are spreading out their risk to many different investments instead of taking the chance of putting all of their money in one start up firm.
Venture capital firms are typically structured as partnerships, the general partners of which serve as the managers of the firm and will serve as investment advisors to the venture capital funds raised. Venture capital firms in the United States may also be structured as limited liability companies, in which case the firm's managers are known as managing members. Investors in venture capital funds are known as limited partners. 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.
Venture capitalist firms differ in their motivations and approaches. There are multiple factors, and each firm is different.
Venture capital funds are generally three in types: 1. Angel investors 2. Financial VCs 3. Strategic VCs
Some of the factors that influence VC decisions include:
- Business situation: Some VCs tend to invest in new, disruptive ideas, or fledgling companies. Others prefer investing in established companies that need support to go public or grow.
- Some invest solely in certain industries.
- Some prefer operating locally while others will operate nationwide or even globally.
- VC expectations can often vary. Some may want a quicker public sale of the company or expect fast growth. The amount of help a VC provides can vary from one firm to the next. There are also estimates on how big of an exit a VC will expect for your company (i.e. if the size of the VC fund is $20M, estimate that they'll at least want you to exit for the size of the fund.
Within the venture capital industry, the general partners and other investment professionals of the venture capital firm are often referred to as "venture capitalists" or "VCs". Typical career backgrounds vary, but, broadly speaking, venture capitalists come from either an operational or a finance background. 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. Venture capitalists with finance backgrounds tend to have investment banking or other corporate finance experience.
Although the titles are not entirely uniform from firm to firm, other positions at venture capital firms include:
|General Partners or GPs||They run the Venture Capital firm and make the investment decisions on behalf of the fund. GPs typically put in personal capital up to 1-2% of the VC Fund size to show their commitment to the LPs.|
|Venture partners||Venture partners are expected to source potential investment opportunities ("bring in deals") and typically are compensated only for those deals with which they are involved.|
|Principal||This is a mid-level investment professional position, and often considered a "partner-track" position. Principals will have been promoted from a senior associate position or who have commensurate experience in another field, such as investment banking, management consulting, or a market of particular interest to the strategy of the venture capital firm.|
|Associate||This is typically the most junior apprentice position within a venture capital firm. After a few successful years, an associate may move up to the "senior associate" position and potentially principal and beyond. Associates will often have worked for 1–2 years in another field, such as investment banking or management consulting.|
|Analyst||In some cases, a venture capital firm may offer an analyst role for fresh graduates who have no prior relevant experience.|
|Entrepreneur-in-residence||Entrepreneurs-in-residence (EIRs) are experts in a particular industry sector (e.g., biotechnology or social media) and perform due diligence on potential deals. EIRs are hired by venture capital firms temporarily (six to 18 months) and are expected to develop and pitch startup ideas to their host firm, although neither party is bound to work with each other. Some EIRs move on to executive positions within a portfolio company.|
Structure of the funds
This section does not cite any sources. (May 2019) (Learn how and when to remove this template message)
Most venture capital funds have a fixed life of 10 years, with the possibility of a few years of extensions to allow for private companies still seeking liquidity. The investing cycle for most funds is generally three to five years, after which the focus is managing and making follow-on investments in an existing portfolio. This model was pioneered by successful funds in Silicon Valley through the 1980s to invest in technological trends broadly but only during their period of ascendance, and to cut exposure to management and marketing risks of any individual firm or its product.
In such a fund, the investors have a fixed commitment to the fund that is initially unfunded and subsequently "called down" by the venture capital fund over time as the fund makes its investments. There are substantial penalties for a limited partner (or investor) that fails to participate in a capital call.
It can take anywhere from a month or so to several years for venture capitalists to raise money from limited partners for their fund. At the time when all of the money has been raised, the fund is said to be closed, and the 10-year lifetime begins. Some funds have partial closes when one half (or some other amount) of the fund has been raised. The vintage year generally refers to the year in which the fund was closed and may serve as a means to stratify VC funds for comparison.
From investors' point of view, funds can be: (1) traditional—where all the investors invest with equal terms; or (2) asymmetric—where different investors have different terms. Typically the asymmetry is seen in cases where there's an investor that has other interests such as tax income in case of public investors.
Venture capitalists are compensated through a combination of management fees and carried interest (often referred to as a "two and 20" arrangement):
|Management fees||an annual payment made by the investors in the fund to the fund's manager to pay for the private-equity firm's investment operations. In a typical venture capital fund, the general partners receive an annual management fee equal to up to 2% of the committed capital.|
|Carried interest||a share of the profits of the fund (typically 20%), paid to the private-equity fund's management company as a performance incentive. The remaining 80% of the profits are paid to the fund's investors Strong limited partner interest in top-tier venture firms has led to a general trend toward terms more favorable to the venture partnership, and certain groups are able to command carried interest of 25–30% on their funds.|
Because a fund may run out of capital prior to the end of its life, larger venture capital firms usually have several overlapping funds at the same time; doing so lets the larger firm keep specialists in all stages of the development of firms almost constantly engaged. Smaller firms tend to thrive or fail with their initial industry contacts; by the time the fund cashes out, an entirely new generation of technologies and people is ascending, whom the general partners may not know well, and so it is prudent to reassess and shift industries or personnel rather than attempt to simply invest more in the industry or people the partners already know.
Because of the strict requirements venture capitalists have for potential investments, many entrepreneurs seek seed funding from angel investors, who may be more willing to invest in highly speculative opportunities, or may have a prior relationship with the entrepreneur. Additionally, entrepreneurs may seek alternative financing, such as revenue-based financing, to avoid giving up equity ownership in the business. For entrepreneurs seeking more than just funding, startup studios can be an appealing alternative to venture capitalists, as they provide operational support and an experienced team. 
Furthermore, many venture capital firms will only seriously evaluate an investment in a start-up company otherwise unknown to them if the company can prove at least some of its claims about the technology and/or market potential for its product or services. To achieve this, or even just to avoid the dilutive effects of receiving funding before such claims are proven, many start-ups seek to self-finance sweat equity until they reach a point where they can credibly approach outside capital providers such as venture capitalists or angel investors. This practice is called "bootstrapping".
Equity crowdfunding is emerging as an alternative to traditional venture capital. Traditional crowdfunding is an approach to raising the capital required for a new project or enterprise by appealing to large numbers of ordinary people for small donations. While such an approach has long precedents in the sphere of charity, it is receiving renewed attention from entrepreneurs, now that social media and online communities make it possible to reach out to a group of potentially interested supporters at very low cost. Some equity crowdfunding models are also being applied specifically for startup funding, such as those listed at Comparison of crowd funding services. One of the reasons to look for alternatives to venture capital is the problem of the traditional VC model. The traditional VCs are shifting their focus to later-stage investments, and return on investment of many VC funds have been low or negative.
In Europe and India, Media for equity is a partial alternative to venture capital funding. Media for equity investors are able to supply start-ups with often significant advertising campaigns in return for equity. In Europe, an investment advisory firm offers young ventures the option to exchange equity for services investment; their aim is to guide ventures through the development stage to arrive at a significant funding, mergers and acquisition, or other exit strategy.
In industries where assets can be securitized effectively because they reliably generate future revenue streams or have a good potential for resale in case of foreclosure, businesses may more cheaply be able to raise debt to finance their growth. Good examples would include asset-intensive extractive industries such as mining, or manufacturing industries. Offshore funding is provided via specialist venture capital trusts, which seek to use securitization in structuring hybrid multi-market transactions via an SPV (special purpose vehicle): a corporate entity that is designed solely for the purpose of the financing.
In addition to traditional venture capital and angel networks, groups have emerged, which allow groups of small investors or entrepreneurs themselves to compete in a privatized business plan competition where the group itself serves as the investor through a democratic process.
Law firms are also increasingly acting as an intermediary between clients seeking venture capital and the firms providing it.
Other forms include venture resources that seek to provide non-monetary support to launch a new venture.
Venture capital is also associated with job creation (accounting for 2% of US GDP), the knowledge economy, and used as a proxy measure of innovation within an economic sector or geography. Every year, there are nearly 2 million businesses created in the US, and 600–800 get venture capital funding. According to the National Venture Capital Association, 11% of private sector jobs come from venture-backed companies and venture-backed revenue accounts for 21% of US GDP.
Babson College's Diana Report found that the number of women partners in VC firms decreased from 10% in 1999 to 6% in 2014. The report also found that 97% of VC-funded businesses had male chief executives, and that businesses with all-male teams were more than four times as likely to receive VC funding compared to teams with at least one woman. Currently, about 3 percent of all venture capital is going to woman-led companies. More than 75% of VC firms in the US did not have any female venture capitalists at the time they were surveyed. It was found that a greater fraction of VC firms had never had a woman represent them on the board of one of their portfolio companies. In 2017 only 2.2% of all VC funding went to female founders.
For comparison, a UC Davis study focusing on large public companies in California found 49.5% with at least one female board seat. When the latter results were published, some San Jose Mercury News readers dismissed the possibility that sexism was a cause. In a follow-up Newsweek article, Nina Burleigh asked "Where were all these offended people when women like Heidi Roizen published accounts of having a venture capitalist stick her hand in his pants under a table while a deal was being discussed?"
Venture capital, as an industry, originated in the United States, and American firms have traditionally been the largest participants in venture deals with the bulk of venture capital being deployed in American companies. However, increasingly, non-US venture investment is growing, and the number and size of non-US venture capitalists have been expanding.
Venture capital has been used as a tool for economic development in a variety of developing regions. In many of these regions, with less developed financial sectors, venture capital plays a role in facilitating access to finance for small and medium enterprises (SMEs), which in most cases would not qualify for receiving bank loans.
In the year of 2008, while VC funding were still majorly dominated by U.S. money ($28.8 billion invested in over 2550 deals in 2008), compared to international fund investments ($13.4 billion invested elsewhere), there has been an average 5% growth in the venture capital deals outside the US, mainly in China and Europe. Geographical differences can be significant. For instance, in the UK, 4% of British investment goes to venture capital, compared to about 33% in the U.S.
Venture capitalists invested some $29.1 billion in 3,752 deals in the U.S. through the fourth quarter of 2011, according to a report by the National Venture Capital Association. The same numbers for all of 2010 were $23.4 billion in 3,496 deals.
According to a report by Dow Jones VentureSource, venture capital funding fell to $6.4 billion in the US in the first quarter of 2013, an 11.8% drop from the first quarter of 2012, and a 20.8% decline from 2011. Venture firms have added $4.2 billion into their funds this year, down from $6.3 billion in the first quarter of 2013, but up from $2.6 billion in the fourth quarter of 2012.
The Bulgarian venture capital industry has been growing rapidly in the past decade. As of the beginning of 2021, there are 18 VC and growth equity firms on the local market, with the total funding available for technology startups exceeding €200M. According to BVCA – Bulgarian Private Equity and Venture Capital Association, 59 transactions of total value of €29.4 million took place in 2020. Most of the venture capital investments in Bulgaria are concentrated in the seed and Series A stages. Sofia-based LAUNCHub Ventures recently launched one of the biggest funds in the region, with a target size of €70 million.
The Venture Capital industry in Mexico is a fast-growing sector in the country that, with the support of institutions and private funds, is estimated to reach US$100 billion invested by 2018.
In Israel, high-tech entrepreneurship and venture capital have flourished well beyond the country's relative size. As it has very little natural resources and, historically has been forced to build its economy on knowledge-based industries, its VC industry has rapidly developed, and nowadays has about 70 active venture capital funds, of which 14 international VCs with Israeli offices, and additional 220 international funds which actively invest in Israel. In addition, as of 2010, Israel led the world in venture capital invested per capita. Israel attracted $170 per person compared to $75 in the USA. About two thirds of the funds invested were from foreign sources, and the rest domestic. In 2013, Wix.com joined 62 other Israeli firms on the Nasdaq.
Canadian technology companies have attracted interest from the global venture capital community partially as a result of generous tax incentive through the Scientific Research and Experimental Development (SR&ED) investment tax credit program. The basic incentive available to any Canadian corporation performing R&D is a refundable tax credit that is equal to 20% of "qualifying" R&D expenditures (labour, material, R&D contracts, and R&D equipment). An enhanced 35% refundable tax credit of available to certain (i.e. small) Canadian-controlled private corporations (CCPCs). Because the CCPC rules require a minimum of 50% Canadian ownership in the company performing R&D, foreign investors who would like to benefit from the larger 35% tax credit must accept minority position in the company, which might not be desirable. The SR&ED program does not restrict the export of any technology or intellectual property that may have been developed with the benefit of SR&ED tax incentives.
Canada also has a fairly unusual form of venture capital generation in its labour-sponsored venture capital corporations (LSVCC). These funds, also known as Retail Venture Capital or Labour Sponsored Investment Funds (LSIF), are generally sponsored by labor unions and offer tax breaks from government to encourage retail investors to purchase the funds. Generally, these Retail Venture Capital funds only invest in companies where the majority of employees are in Canada. However, innovative structures have been developed to permit LSVCCs to direct in Canadian subsidiaries of corporations incorporated in jurisdictions outside of Canada.
Many Swiss start-ups are university spin-offs, in particular from its federal institutes of technology in Lausanne and Zurich. According to a study by the London School of Economics analysing 130 ETH Zurich spin-offs over 10 years, about 90% of these start-ups survived the first five critical years, resulting in an average annual IRR of more than 43%. Switzerland's most active early-stage investors are The Zurich Cantonal Bank, investiere.ch, Swiss Founders Fund, as well as a number of angel investor clubs.
Leading early-stage venture capital investors in Europe include Mark Tluszcz of Mangrove Capital Partners and Danny Rimer of Index Ventures, both of whom were named on Forbes Magazine's Midas List of the world's top dealmakers in technology venture capital in 2007. In 2020, the first Italian Venture capital Fund named Primo Space was launched by Primomiglio SGR. This fund first closed €58 million out a target €80 million and is focused on Space investing.
Recent years have seen a revival of the Nordic venture scene with more than €3 billion raised by VC funds in the Nordic region over the last five years. Over the past five years, a total of €2.7 billion has been invested into Nordic startups. Known Nordic early-stage venture capital funds include NorthZone (Sweden), Maki.vc (Finland) and ByFounders (Copenhagen).
As of March 2019, there are 130 active VC firms in Poland which have invested locally in over 750 companies, an average of 9 companies per portfolio. Since 2016, new legal institutions have been established for entities implementing investments in enterprises in the seed or startup phase. In 2018, venture capital funds invested €178M in Polish startups (0.033% of GDP). As of March 2019, total assets managed by VC companies operating in Poland are estimated at €2.6B. The total value of investments of the Polish VC market is worth €209.2M.
India is fast catching up with the West in the field of venture capital and a number of venture capital funds have a presence in the country (IVCA). In 2006, the total amount of private equity and venture capital in India reached $7.5 billion across 299 deals. In the Indian context, venture capital consists of investing in equity, quasi-equity, or conditional loans in order to promote unlisted, high-risk, or high-tech firms driven by technically or professionally qualified entrepreneurs. It is also used to refer to investors "providing seed", "start-up and first-stage financing", or financing companies that have demonstrated extraordinary business potential. Venture capital refers to capital investment; equity and debt ;both of which carry indubitable risk. The risk anticipated is very high. The venture capital industry follows the concept of "high risk, high return", innovative entrepreneurship, knowledge-based ideas and human capital intensive enterprises have taken the front seat as venture capitalists invest in risky finance to encourage innovation.
Singapore is widely recognized and featured as one of the hottest places to both start up and invest, mainly due to its healthy ecosystem, its strategic location and connectedness to foreign markets. With 100 deals valued at US$3.5 billion, Singapore saw a record value of PE and VC investments in 2016. The number of PE and VC investments increased substantially over the last 5 years: In 2015, Singapore recorded 81 investments with an aggregate value of US$2.2 billion while in 2014 and 2013, PE and VC deal values came to US$2.4 billion and US$0.9 billion respectively. With 53 percent, tech investments account for the majority of deal volume. Moreover, Singapore is home to two of South-East Asia's largest unicorns. Garena is reportedly the highest-valued unicorn in the region with a US$3.5 billion price tag, while Grab is the highest-funded, having raised a total of US$1.43 billion since its incorporation in 2012. Start-ups and small businesses in Singapore receive support from policymakers and the local government fosters the role VCs play to support entrepreneurship in Singapore and the region. For instance, in 2016, Singapore's National Research Foundation (NRF) has given out grants up to around $30 million to four large local enterprises for investments in startups in the city-state. This first of its kind partnership NRF has entered into is designed to encourage these enterprises to source for new technologies and innovative business models. Currently, the rules governing VC firms are being reviewed by the Monetary Authority of Singapore (MAS) to make it easier to set up funds and increase funding opportunities for start-ups. This mainly includes simplifying and shortening the authorization process for new venture capital managers and to study whether existing incentives that have attracted traditional asset managers here will be suitable for the VC sector. A public consultation on the proposals was held in January 2017 with changes expected to be introduced by July.
Middle East and North Africa
The Middle East and North Africa (MENA) venture capital industry is an early stage of development but growing. According to H1 2019 MENA Venture Investment Report by MAGNiTT, 238 startup investment deals have taken place in the region in the first half of 2019, totaling in $471 million in investments. Compared to 2018’s H1 report, this represents an increase of 66% in total funding and 28% in number of deals.
According to the report, the UAE is the most active ecosystem in the region with 26% of the deals made in H1, followed by Egypt at 21%, and Lebanon at 13%. In terms of deals by sector, fintech remains the most active industry with 17% of the deals made, followed by e-commerce at 12%, and delivery and transport at 8%.
The report also notes that a total of 130 institutions invested in MENA-based startups in H1 2019, 30% of which were headquartered outside the MENA, demonstrating international appetite for investments in the region. 15 startup exits have been recorded in H1 2019, with Careem’s $3.1 billion acquisition by Uber being the first unicorn exit in the region. Other notable exits include Souq.com exit to Amazon in 2017 for $650 million.
The Southern African venture capital industry is developing. The South African Government and Revenue Service is following the international trend of using tax-efficient vehicles to propel economic growth and job creation through venture capital. Section 12 J of the Income Tax Act was updated to include venture capital. Companies are allowed to use a tax-efficient structure similar to VCTs in the UK. Despite the above structure, the government needs to adjust its regulation around intellectual property, exchange control and other legislation to ensure that Venture capital succeeds.
Currently, there are not many venture capital funds in operation and it is a small community; however, the number of venture funds are steadily increasing with new incentives slowly coming in from government. Funds are difficult to come by and due to the limited funding, companies are more likely to receive funding if they can demonstrate initial sales or traction and the potential for significant growth. The majority of the venture capital in Sub-Saharan Africa is centered on South Africa and Kenya.
Entrepreneurship is a key to growth. Governments will need to ensure business friendly regulatory environments in order to help foster innovation. In 2019, venture capital startup funding grew to 1.3 billion dollars, increasing rapidly. The causes are as of yet unclear, but education is certainly a factor.
Unlike public companies, information regarding an entrepreneur's business is typically confidential and proprietary. As part of the due diligence process, most venture capitalists will require significant detail with respect to a company's business plan. Entrepreneurs must remain vigilant about sharing information with venture capitalists that are investors in their competitors. Most venture capitalists treat information confidentially, but as a matter of business practice, they do not typically enter into Non Disclosure Agreements because of the potential liability issues those agreements entail. Entrepreneurs are typically well advised to protect truly proprietary intellectual property.
Limited partners of venture capital firms typically have access only to limited amounts of information with respect to the individual portfolio companies in which they are invested and are typically bound by confidentiality provisions in the fund's limited partnership agreement.
There are several strict guidelines regulating those that deal in venture capital. Namely, they are not allowed to advertise or solicit business in any form as per the U.S. Securities and Exchange Commission guidelines.
In popular culture
- Mark Coggins' novel Vulture Capital (2002) features a venture capitalist protagonist who investigates the disappearance of the chief scientist in a biotech firm in which he has invested. Coggins also worked in the industry and was co-founder of a dot-com startup.
- Drawing on his experience as reporter covering technology for the New York Times, Matt Richtel produced the novel Hooked (2007), in which the actions of the main character's deceased girlfriend, a Silicon Valley venture capitalist, play a key role in the plot.
- Great, detailed work on VC method of funding.
- In the Dilbert comic strip, a character named "Vijay, the World's Most Desperate Venture Capitalist" frequently makes appearances, offering bags of cash to anyone with even a hint of potential. In one strip, he offers two small children with good math grades money based on the fact that if they marry and produce an engineer baby he can invest in the infant's first idea. The children respond that they are already looking for mezzanine funding.
- Robert von Goeben and Kathryn Siegler produced a comic strip called The VC between the years 1997 and 2000 that parodied the industry, often by showing humorous exchanges between venture capitalists and entrepreneurs. Von Goeben was a partner in Redleaf Venture Management when he began writing the strip.
- In Wedding Crashers (2005), Jeremy Grey (Vince Vaughn) and John Beckwith (Owen Wilson) are bachelors who create appearances to play at different weddings of complete strangers, and a large part of the movie follows them posing as venture capitalists from New Hampshire.
- The documentary Something Ventured (2011) chronicled the recent history of American technology venture capitalists.
- In the TV series Dragons' Den, various startup companies pitch their business plans to a panel of venture capitalists.
- In the ABC reality television show Shark Tank, venture capitalists ("Sharks") hear entrepreneurs' pitches and select which ones they will invest in.
- The short-lived Bravo reality TV show Start-Ups: Silicon Valley had participation from venture capitalists in Silicon Valley.
- The sitcom Silicon Valley parodies startup companies and venture capital culture.
- The AMC Drama Halt and Catch Fire features the use of Venture Capital firms for the startup companies during the PC revolution of the 80s and rise of the world-wide-web in the early 90s.
- Angel investor
- Corporate venture capital
- Deep tech
- Enterprise Capital Fund—a type of venture capital fund in the UK
- Equity crowdfunding
- History of private equity and venture capital
- Initial public offering (IPO)
- List of venture capital firms
- Platform cooperative
- Private equity secondary market
- Private equity
- Revenue-based financing
- Seed funding
- Social venture capital
- Sweat equity
- Venture capital financing
- Venture capitalist
- Women in venture capital
- In 1971, a series of articles entitled "Silicon Valley USA" were published in the Electronic News, a weekly trade publication, giving rise to the use of the term Silicon Valley.
- The "prudent man rule" is a fiduciary responsibility of investment managers under ERISA. Under the original application, each investment was expected to adhere to risk standards on its own merits, limiting the ability of investment managers to make any investments deemed potentially risky. Under the revised 1978 interpretation, the concept of portfolio diversification of risk, measuring risk at the aggregate portfolio level rather than the investment level to satisfy fiduciary standards would also be accepted.
- Duhigg, Charles, "The Enablers: Venture capitalists used to exert discipline on startups. Now they often encourage recklessness", The New Yorker, 30 November 2020, pp. 38–47.
- Lerner, Josh, and Ramana Nanda. 2020. "Venture Capital's Role in Financing Innovation: What We Know and How Much We Still Need to Learn." Journal of Economic Perspectives, 34 (3): 237-61.
- Schmitt, Antje; Rosing, Kathrin; Zhang, Stephen X.; Leatherbee, Michael (September 21, 2017). "A Dynamic Model of Entrepreneurial Uncertainty and Business Opportunity Identification: Exploration as a Mediator and Entrepreneurial Self-Efficacy as a Moderator". Entrepreneurship Theory and Practice. 42 (6): 835–859. doi:10.1177/1042258717721482. ISSN 1042-2587. S2CID 148840401.
- Article: The New Argonauts, Global Search And Local Institution Building. Author : Saxeninan and Sabel
- S.X. Zhang and J. Cueto (2015). "The Study of Bias in Entrepreneurship". Entrepreneurship Theory and Practice. 41 (3): 419–454. doi:10.1111/etap.12212. S2CID 146617323. Archived from the original on December 8, 2015.
- Wilson, John. The New Venturers, Inside the High Stakes World of Venture Capital.
- Ante, Spencer E. (2008). Creative Capital: Georges Doriot and the Birth of Venture Capital. Cambridge, MA: Harvard Business School Press. ISBN 978-1-4221-0122-3.
- They Made America - Georges Doriot Archived December 8, 2012, at the Wayback Machine
- Ante, Spencer E.. Creative capital: Georges Doriot and the birth of venture capital. Boston, Harvard Business Press, 2008.
- Kirsner, Scott. "Venture capital's grandfather." The Boston Globe, April 6, 2008.
- "Archived copy". Archived from the original on December 18, 2010. Retrieved May 18, 2012.CS1 maint: archived copy as title (link) Small Business Administration Investment Division (SBIC)
- Dilger, Robert J. (April 4, 2019). "SBA Small Business Investment CompanyProgram" (PDF). Congressional Research Service. p. 1. Retrieved July 8, 2019.
- Lea, Charles. “Tape 4- Charles Lea”. Interview by Charles Rudnick. National Venture Capital Association Venture Capital Oral History Project Funded by Charles W. Newhall III. September 18, 2008.
- "www.draperco.com". Archived from the original on October 2, 2011.
- "Archived copy". Archived from the original on July 30, 2008. Retrieved July 30, 2008.CS1 maint: archived copy as title (link) Official website of the National Venture Capital Association, the largest trade association for the venture capital industry.
- POLLACK, ANDREW. "Venture Capital Loses Its Vigor." New York Times, October 8, 1989.
- Kurtzman, Joel. " PROSPECTS; Venture Capital." New York Times, March 27, 1988.
- LUECK, THOMAS J. " High Tech's Glamour fades for some venture capitalists." New York Times, February 6, 1987.
- Neumann, Jerry (January 8, 2015). "Heat Death: Venture Capital in the 1980s". Reaction Wheel. Retrieved May 5, 2020.
- National Science Foundation, “Science and Engineering Indicators–2002″
- "MoneyTree Survey". Pwcmoneytree.com. February 21, 2007. Archived from the original on June 14, 2007. Retrieved May 18, 2012.
- Dow Jones Private Equity Analyst as referenced in Taub, Stephen. "Archived copy". Archived from the original on June 14, 2011. Retrieved June 8, 2008.CS1 maint: archived copy as title (link) Record Year for Private Equity Fundraising. CFO.com, January 11, 2007.
- "How Do Venture Capitalists Make Decisions?". Stanford University Graduate School of Business Research Paper. SSRN 2801385.
- Investment philosophy of VCs Archived June 12, 2008, at the Wayback Machine.
- Cash-strapped entrepreneurs get creative, BBC News Archived May 21, 2010, at the Wayback Machine.
- Corporate Finance, 8th Edition. Ross, Westerfield, Jaffe. McGraw-Hill publishing, 2008.
- "Bootlaw – Essential law for startups and emerging tech businesses – Up, Up and Away. Should You be Thinking About Venture Debt?". Bootlaw.com. Archived from the original on April 20, 2012. Retrieved May 18, 2012.
- Andreas Kuckertz (December 1, 2015). "The interplay of track record and trustworthiness in venture capital fundraising". ResearchGate. Archived from the original on September 27, 2015.
- Röhm, P., Köhn, A., Kuckertz, A. and Dehnen, H. S. (2017) A world of difference? The impact of corporate venture capitalists’ investment motivation on startup valuation Archived March 3, 2017, at the Wayback Machine. Journal of Business Economics. doi:10.1007/s11573-017-0857-5
- https://hbr.org/1986/05/how-much-money-does-your-new-venture-need. Missing or empty
- Private equity industry dictionary Archived May 5, 2008, at the Wayback Machine. CalPERS Alternative Investment Program
- Kronenberger, Craig (February 23, 2021). "How the Startup Studio Business Model Is Changing the Startup Economy as We Know It". Medium. Retrieved March 16, 2021.
- "Grow VC launches, aiming to become the Kiva for tech startups". Eu.techcrunch.com. February 15, 2010. Archived from the original on May 30, 2012. Retrieved May 18, 2012.
- "Sollertis Strategy - Adventure Capitalist and Consulting Organisation". Archived from the original on December 29, 2014. Retrieved December 29, 2014.
- "Grow Venture Community". Growvc.com. Archived from the original on February 9, 2010. Retrieved May 18, 2012.
- Austin, Scott (September 9, 2010). ""Law Firms Offer Discounts, Play Matchmaker," The Wall Street Journal, Sept. 9, 2010". Online.wsj.com. Archived from the original on January 15, 2015. Retrieved May 18, 2012.
- "Venture Impact: The Economic Importance of Venture-Backed Companies to the U.S. Economy". National Venture Capital Association. Archived from the original on June 30, 2014. Retrieved May 18, 2012.
- Venture Impact (5 ed.). IHS Global Insight. 2009. p. 2. ISBN 978-0-9785015-7-0. Archived from the original on June 30, 2014.
- Brush, Candida (2014). "Diana Report" (PDF). Women Entrepreneurs 2014. Archived from the original (PDF) on January 22, 2016. Retrieved January 14, 2016.
- Alba, Davey (March 20, 2015). "The gender problem in venture capital is really, really bad". Wired. Archived from the original on February 10, 2016. Retrieved January 15, 2016.
- Zarya, Valentina (January 1, 2018). "emale Founders Got 2% of Venture Capital Dollars in 2017". Fortune Magazine. Archived from the original on March 1, 2018. Retrieved February 28, 2018.
- Ellis, Katrina (2006). "UC Davis Study of California Women Business Leaders" (PDF). UC Regents. Archived (PDF) from the original on April 2, 2015. Retrieved March 25, 2015. Cite journal requires
- Tam, Ruth (January 30, 2015). "Artist behind Newsweek cover: it's not sexist, it depicts the ugliness of sexism". PBS NewsHour. Archived from the original on March 21, 2015. Retrieved March 21, 2015.
- Burleigh, Nina (January 28, 2015). "What Silicon Valley Thinks of Women". Newsweek. Archived from the original on March 21, 2015. Retrieved March 21, 2015.
- "International venture funding rose 5 percent in 2008". VentureBeat. February 18, 2009. Archived from the original on July 14, 2012. Retrieved May 18, 2012.
- "Mandelson, Peter. "There is no Google, or Amazon, or Microsoft or Apple in the UK, Mandelson tells BVCA." BriskFox Financial News, March 11, 2009". Briskfox.com. Archived from the original on January 20, 2012. Retrieved May 18, 2012.
- Gantenbein, Pascal; Kind, Axel; Volonte, Christophe (2019). "Individualism and Venture Capital: A Cross-Country Study". Management International Review. 59 (5): 741–777. doi:10.1007/s11575-019-00394-7.
- "Recent Stats & Studies". Nvca.org. March 31, 2012. Archived from the original on May 5, 2012. Retrieved May 18, 2012.
- Hamilton, Walter (April 18, 2013). "Venture-capital funding drops sharply in Southern California". latimes.com. Archived from the original on June 16, 2013. Retrieved June 14, 2013.
- "Romanian – Bulgarian Venture Comparison Report 2020". BVCA. Retrieved April 9, 2021.
- "LAUNCHub Ventures heading towards a $85M fund for South Eastern European startups". TechCrunch. Retrieved April 9, 2021.
- "Se afianza en México industria de "venture capital" | EL EMPRESARIO" (in Spanish). Elempresario.mx. August 16, 2012. Archived from the original on May 12, 2013. Retrieved June 14, 2013.
- What next for the start-up nation? Archived July 25, 2017, at the Wayback Machine, The Economist, January 21, 2012
- Israel's Wix Reveals IPO Plans Archived July 29, 2017, at the Wayback Machine, Forbes, October 23, 2013
- Wagner, Steffen (June 20, 2011). "Bright sparks! A portrait of entrepreneurial Switzerland" (PDF). Swiss Business. Archived (PDF) from the original on May 2, 2013. Retrieved April 24, 2013.
- Oskarsson, Ingvi; Schläpfer, Alexander (September 2008). "The performance of Spin-off companies at the Swiss Federal Institute of Technology Zurich" (PDF). ETH transfer. Archived from the original on February 2, 2014. Retrieved January 29, 2014.
- "Most active Early Stage Investors in 2013". Startupticker.ch. March 21, 2014. Archived from the original on June 19, 2015. Retrieved June 19, 2015.
- Erika Brown and Claire Cain Miller (February 2, 2007). "Technology's Top Dealmakers". Forbes. Archived from the original on August 7, 2017.
- European Commission. "Press corner". European Commission - European Commission. European Commission - European Commission. Retrieved February 9, 2021.
- "Nordics.vc". nordics.vc. Retrieved February 19, 2021.
- Krysztofiak-Szopa, Julia; Wisłowska, Monika (2019). The Golden Book of Venture Capital in Poland 2019. Warsaw: Startup Poland. ISBN 978-83-948788-6-3.
- "Venture Capital & Private Equity in India (October 2007)" (PDF). Archived from the original (PDF) on January 11, 2012. Retrieved May 18, 2012.
- "Venture Capital And Private Equity in India" (PDF). Archived from the original (PDF) on January 11, 2012.
- "Venture Capital:An Impetus to Indian Economy" (PDF). Archived (PDF) from the original on November 24, 2011.
- "Let's Open the 100 Million Dollar Door | IDG Ventures Vietnam – Official Website". IDG Venture Vietnam. Archived from the original on March 22, 2012. Retrieved May 18, 2012.
- "4 Reasons Why Singapore Is a Global Hot Spot for Entrepreneurship". inc.com. October 15, 2015. Retrieved May 6, 2018.
- Cheok, Jacquelyn. "Tech behind record PE, VC deals in 2016". businesstimes.com.sg. Archived from the original on October 12, 2017. Retrieved May 6, 2018.
- "Singapore's NRF awards $30m to CapitaLand, DeClout, Wilmar, YCH to invest in local startups - DealStreetAsia". www.dealstreetasia.com. Archived from the original on August 13, 2016. Retrieved May 6, 2018.
- "Archived copy". Archived from the original on February 13, 2017. Retrieved February 12, 2017.CS1 maint: archived copy as title (link)
- "Careem proves unicorns grow in deserts too". gulfnews.com. Retrieved December 25, 2019.
- "Amazon to acquire Souq, a Middle East clone once valued at $1B, for $650M". TechCrunch. Retrieved December 25, 2019.
- The Economist, "The African century", March 28th 2020.
- "Eliminating the Prohibition Against General Solicitation and General Advertising in Rule 506 and Rule 144A Offerings". U.S. Securities and Exchange Commission. Archived from the original on September 25, 2014. Retrieved August 20, 2014.
- Liedtke, Michael. "Salon.com, "How Greedy Was My Valley?"". Dir.salon.com. Archived from the original on May 31, 2010. Retrieved May 18, 2012.
- Richtel, Matt. "National Public Radio, "Love, Loss and Digital-Age Deception in Hooke"". Npr.org. Archived from the original on July 12, 2012. Retrieved May 18, 2012.
- Sahlman, William A.; Scherlis, Daniel R. (July 24, 1987). "A Method For Valuing High-Risk, Long-Term Investments: The "Venture Capital Method"". Archived from the original on March 31, 2018. Retrieved May 6, 2018 – via www.hbs.edu. Cite journal requires
- "The VC Comic Strip". Thevc.com. Archived from the original on April 11, 2012. Retrieved May 18, 2012.
- "Comic Book Pokes Fun at Venture Capitalists". San Francisco Chronicle. December 20, 1999. Archived from the original on June 12, 2012. Retrieved May 18, 2012.