Venture capital financing is a type of funding by
venture capital. It is
private equity capital that can be provided at various stages or funding rounds. Common funding rounds include early-stage
seed funding in high-potential, growth companies (
startup companies) and growth funding (also referred to as
series A). Funding is provided in the interest of generating a
return on investment or ROI through an eventual exit through a share sale to an investment body, another trading company or to the general public via an
Initial public offering (IPO).
Ruhnka, Tyzoon T. Tyebjee, Albert V. Bruno (1984). "A Model of Venture Capitalist Investment Activity". Management science. Volume: 30, Issue: 9 (September 1984), pp. 1051–1066.
Frederick D. Lipman (1998). "Financing Your Business with Venture Capital: Strategies to Grow Your Enterprise with Outside Investors". Prima Lifestyles. (November 15, 1998).