Library and Internet Resources for Raising Venture CapitalThis page recommends information resources which help answer the broad question:

"How do I go about getting VC funding for my start-up company?"●

Use the information below to help you determine the most appropriate potential sources of equity backing foryour business venture.

NOTE: If you're interested in working for a venture capital firm, consult ourVenture Capital Job Searches Guide.

FINDING VENTURE CAPITAL / EQUITYKnow What You Need

Introduction to Venture Capital  

Venture Capital Firms -- Whom Do They Fund?

Business Incubators and Angel Investors

Government Funding for Small Businesses

Investment Conferences and Fairs

Selected Articles, Recommended Periodicals...and More

Know What You Need

Before you attempt to enter the high profile venture capital financial world, you need to know what you expectfrom the experience.  Do you want $$$ only?  Or marketing expertise, too?  Or perhaps you really seekmanagement help?   Is your legal infrastructure weak (or non-existent)? What stage of your business planhave you reached?  More importantly, which upcoming stages of your business plan do you expect venturecapital support to help you realize? 

"Capital Questions" from Entrepreneur Magazine (March 1997) helps you determine if "you stand a chance ofgetting venture capital". Take their test and see how you fare.  If you do feel ready for the VC chase, then readthis sobering article in the July 1999 issue of Business 2.0 -- Let the Hard Times Roll!   It details "why too muchcapital can kill you."

If you couldn't answer the "Capital Questions" effectively, you're likely not ready to contact VC firms forbacking.  Instead, other equity options listed below might prove useful for you.  For inspiration,  read anoverview of Ed Palmer's equity success story with his company SolarAttic Inc. (available in the September1999 issue via ProQuest Direct) -- see how his middle-tech idea has been funded in a variety of ways.

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Introduction to Venture Capital  

There are several good overviews to the world of venture capital and explain how venture capitalists determinewhich projects to finance.

To learn more about the many ways to obtain financing for your small business, take the  Equity FinancingCourse created by the Telecommunications Development Fund.  (This online course covers: "differencesbetween debt and equity capital; sources of equity capital; the capital raising process; and extensive on-lineand off-line resources for business owners seeking venture capital.")

Overviews of Venture Capital

"The Art of Getting Funded", a March 1999 article in Electronic Business, "themanagement magazine for the electronics industry".

"Many entrepreneurs mistakenly believe venture capitalists are lookingfor good ideas when, in fact, they are looking for good managers in

particular industry segments."

-- Paul Gibson, "The Art of Getting Funded"

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The opening chapters of Pratt's Guide to Private Equity Sources [Ref HG 65G94; older copies in the stacks] are very informative.  They cover such topicsas:  the background of venture capital; "characteristics of a successfulentrepreneurial management team"; how to "choose and approach a venturecapitalist", etc.

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Wet Feet Press' Insider's Guide to Venture Capital (on Reserve) is a frank,updated view that includes selected lists of VC firms and even a taste of VC"lingo". Though its usually recommended as a "must read" for thoseinterviewing with VC firms, it's an appropriate resource for entrepreneurs aswell.  Learn what really interests partners in these firms.

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The Growth Company Guide to Investors, Deal Structures, and LegalStrategies is a large reference text freely available online.  It provides shortdescriptions of key topics such as joint ventures, windows, incubators, andventure capital.

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Venture Capital Firms -- Whom Do They Fund?

If you have an idea for a stellar "everyone will buy this" kitchen gizmo gadget, you aren't going to want to pitchyour idea to a VC firm that backs only wireless technology solutions.  It's imperative that you know which firmsare interested in your type of project.  Some even have geographic restrictions, and only fund companies incertain areas of the USA / world.   The print and electronic resources below will help you determine which VCfirms back your company's particular niche.

AMERICAN VENTURE  CAPITAL FIRMS

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Selected Lists of Firms:PriceWaterhouseCoopers' MoneyTree Survey VC Funds database -- ProvidesQ2 1999 information arranged by state/region, industry, or in an alphabeticallist of investees.

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Silicon Valley.com's Venture Capital Survey database -- "This is a searchabledatabase of U.S. firms that received venture capitalfinancing between Q3 1997 and Q1 1999. The data was compiled from aMercury News/PricewaterhouseCoopers LLP surveyof venture capitalists."  Search by specific industries, or amount of fundsobtained, etc.

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A comprehensive print resource is Pratt's Guide to Private Equity Sources [RefHG 65 G94; older copies in the stacks].

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The Corporate Finance Sourcebook [Ref HG 4057 A19, on Financial ServicesTables; older copies in the stacks] -- The data in this resource is collected fromsurveys completed by each firm.  Lists personnel, areas of funding interest, etc.

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INTERNATIONAL VENTURE CAPITAL FIRMS

Selected Lists of Firms:The European Venture Capital Association maintains two searchabledatabases (one for entrepreneurs, another for investors) which allowsophisticated searches by industry, country, stage of enterprise, estimation offinancial needs, etc.

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A Guide to Venture Capital in Asia [Ref. HG 86 g85 9th 1998] is a printpublication that provides not only lists of firms in particular countries but also adetailed survey of the Asian VC industry.

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Venture Capital Marketplace, an Australian company, maintains a list ofinternational VC firms.   However, sometimes only a firm's name and country isprovided.

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The Venture Capital Resource Library has a master list of VC firms.  It issearchable by industry.

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Investor Links maintains a large, alphabetical list with direct links to a firm'swebsite.

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Chapter 17 of The Corporate Finance Sourcebook [Ref HG 4057 A19, onFinancial Services Tables; older copies in the stacks] lists non-American firmswho seek VC opportunities in the US.

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Business Incubators and Angel Investors

If venture capital isn't the appropriate financial avenue for your company, perhaps one of the followingalternate routes will be:

Business Incubators -- For entrepreneurs who need lower cost office space, research equipment, and●

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mentoring as their company grows.  There are many state-administered incubators, as well as onesassociated with universities.  In Upstate New York, for example, Syracuse University and RenssalaerPolytechnic Institute both house incubators.

NOTE:  "Internet incubators" is sometimes used to describe those incubators interested especially inhigh-tech projects.

Business Incubators

National Business Incubation Organization -- A  premier source of businessincubation information.  Provides a searchable database of local andinternational incubators.

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Angel Investors -- "Angels" are individuals with substantial equity who choose to invest large sums ofmoney in particular endeavors.  Some angels will be found via business incubators, keeping track of newstartups.

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Angel Investors

Ace-Net -- "Angels' Capital Electronic Network" is a SBA-sponsored servicethat helps companies launch DPOs (direct public offerings).  Also serves to linkinvestees and investors without going the DPO route.

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Garage.com -- Launched in 1998, the company seeks to partner hot projectswith either angels, select venture capitalists, or corporate venture-capitaldivisions.  There will be a "bootcamp" in Boston on September 20-21, 2000.(Note:  Students can attend the bootcamps for reduced rates.)

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"Highway to Heaven" is a June 1999 Entrepreneur Magazine article that coversboth angel investing and business incubation.

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Telecommunications Development Fund has an extensive list of financing andrelated links (including links to many angels).

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Government Funding for Small Businesses

Not all entrepreneurial projects are suitable for venture capital, but would be good candidates for funding bygovernment or other agencies. 

Government Funding for Small Businesses

US Small Business Administration (SBA) -- A great starting point forgovernment funding opportunities.  Allows you to choose a specific SBA officein your area and see what services it offers.

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US Small Business Innovation Research Program -- This program targetsentrepreneurs and includes selected grant opportunities.  (Peruse a list of 1997SBIR New York state awardees.)

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Investment Conferences and Fairs

An increasingly popular and effective way for entrepreneurs to raise early-stage equity is to attend "venturecapital fairs" or "entrepreneurial conferences". These events are sponsored by VC firms, small businessassociations, or related financial organizations, and give attendees a chance to gain valuable exposure to theindustry players.  Interactions are more informal than official "pitch" meetings, in part because it's usually notthe firm's partners who attend, rather their analysts, who are junior members of staff.  Note that several of thelinks below will lead to "fairs" that took place earlier this year; check these sites again for updated informationon future events.

Selected Conferences and Fairs

North America:An October 1998 Entrepreneur Magazine article, "Fair Game", discussedventure capital fairs.

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Early Stage East -- Primarily for East Coast ventures.●

Entrepreneur America's Bootcamp -- "The Boot Camp in Montana is a majoropportunity for selected entrepreneurs to obtain first handcoaching on the key areas of their high-tech start-up businesses. The programis an interactive forum in which Rob Ryan, the founder of AscendCommunications, mentors and assists entrepreneurs in the development of thebusinesses." Rob Ryan was Cornell's 2002 Entrepreneur of the Year.

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Garage.com's Bootcamp -- Held on both sides of the USA.  (Note:  Students canattend the bootcamps for reduced rates.)

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Springboard 2000 -- The "first ever venture capital forum to showcase womenentrepreneurs."  Forums scheduled across the USA, in Silicon Valley, NewEngland and the Mid-Atlantic.

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VentureOne, a venture research firm.  They hold a series of ventureconferences throughout the year.

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International:Net Economy Workshops -- (Profiled in the New York Times' "Eurobytes"column on July 13, 1999.)

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Selected Articles, Recommended Periodicals and More

Gathering tips from other entrepreneurs' experiences, without living through their actual highs and lows, is anexcellent way to gauge what you specifically need to do in your equity search.  Most of the resources beloware case studies or contain information about particular companies. 

Selected Articles

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"Soul Proprietor" -- "The saga of SmartRay Network Inc offers a powerfulreminder of what real entrepreneurship is all about."  An August 2000 FastCompany article. 

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"Cyber Cash" is a March 1999 Entrepreneur Magazine article that stresses theimportance of research to the overall success of your search for equity.

"I'm amazed at how many entrepreneurs don't go to our Web site beforecontacting us [Hummer Winblad Venture Partners]...They'll send abusiness plan for a hardware company.  If they'd looked at the site,

they'd know we only fund software and Internet ventures."

-- Ann Winblad, Principal Partner (as quoted in Cyber Cash)

 

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Entrepreneur Magazine's monthly column "Raising Money" is often insightful. For example, the August 1999 column includes the story of two recent HarvardMBAs and their road to financial backing success.

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Inspirational reading can be found in Red Herring Magazine's list of "The Top10 Entrepreneurs of 1999" (September issue).  The criteria for inclusion in thiselite group were:  "To be considered, an entrepreneur needed a track record ofstarting companies and some measure of success with those endeavors. Hisor her new venture had to offer potentially transformational technologies orservices. Finally, the entrepreneur had to be someone we felt was relativelyundiscovered." This publication is available in paper [HD 9691 A1 R31] orelectronically via Factiva.

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Selected Periodicals

Business 2.0 -- This magazine covers technological innovations and considersitself the "magazine of business in the Internet Age".   Available in paper [HF5548.32  B87]

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Entrepreneur Magazine, as its title suggests, targets entrepreneurs.  It'savailable in paper [HF 5001 I61] and also electronically via ProQuest Direct.(Full journal via Factiva.)

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Fast Company -- They "strive to provide a big picture of the NewEconomy." (Full journal via Factiva.)

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Next Wave -- PriceWaterhouse Coopers' e-publication of "ideas for privateequity investors and entrepreneurs in the technology industry."

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Red Herring -- They cover the "business of technology" and provide very goodcoverage of startups, venture capital, and entrepreneurial activities. (Fulljournal via Factiva.)

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Upside -- "The tech insider." (Full journal via Factiva.)●

...and More

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The Management Library has prepared an exhaustive list of primarily printresources for entrepreneurship.  This list was created for NBA 300 and NBA564 students, but will prove helpful for anyone interested in entrepreneurship.

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The Forum for Women Entrepreneurs has an excellent list of selected fundingresources.

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REMEMBER: If you're interested in working for a venture capital firm,consult our Venture Capital Job Searches Guide.

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