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What kind of venture capital funds exist?

What kind of venture capital funds exist?

Different venture capital firms focus on different types of funding. Some are more attuned to late-stage funding for proven companies who still have not gone public, while others prefer to help startups with bright futures.

There are large venture capital firms, which might invest in any start-up company, as long as they think that the company has potential. There are also more narrow VC firms specializing only in one or a small number of industries, such as clean energy, or semiconductors.

Some will provide seed money to startups who do not yet have a deliverable product or facilities. Some will provide startup money to small companies who need to get their products and services off the ground after they have been developed.

Other VC firms may focus on expansions for small companies, and others may focus on providing the funds necessary to take the company public. You can find out about the existing portfolio of most VC firms on their websites.

They may not tell you about their failed ventures, however, which could represent a significant portion of what they have tried historically, particularly if they have tried to fund many startups.

It’s worth knowing, too, that a VC firm, since it has a vested interest in the performance of the company, may provide management guidance, help plug the company into talented people who can help, and take positions on the board to make sure they have a say in the direction of the company.

Keywords: asset allocation, alternative investments, startups, venture capital, VC firm, seed money, going public, capital structure,