Venture Capital Financing - Overview

Overview

To start a new startup company or to bring a new product to the market, the venture needs to attract funding. There are several categories of financing possibilities. Smaller ventures sometimes rely on family funding, loans from friends, personal bank loans or crowd funding.

More ambitious projects that need more substantial funding may turn to angel investors - private investors who use their own capital to finance a ventures’ need, or Venture Capital (VC) companies that specialize in financing new ventures. VC firms may also provide expertise the venture is lacking, such as legal or marketing knowledge.