Let’s talk about funding. If you have a startup or are considering starting a startup, you might be in a situation where you need cash to support the business. If you’re looking for the top venture capital firms, then this article is for you. Be sure to also read the post about the best startup blogs to follow to quickly grow your SaaS business since there are VC blogs mentioned in there as well.
Each type of funding has its own advantages and disadvantages, so it’s important to choose the right one for your business. Check out The Pros and Cons of Hiring Startup Funding Consultants.
So, which type of funding is right for your business? It depends on a number of factors, including your business’s stage of development, the amount of capital you need, and your goals for the future.
Government grants can be a great option for businesses that are working on developing new, innovative products or services. However, the application process can be competitive, and there may be strict criteria that businesses must meet in order to be eligible.
Angel investors / Seed Funding
Also known as “seed” funding. These investors aren’t always professional investment companies. Some are family members or friends. Others are high-net-worth individuals who are looking to invest in businesses with high growth potential. The advantage of angel investors is that they can provide both financial and mentorship support to businesses. However, the downside is that they may be harder to find than other types of investors.
Many businesses start with some sort of seed funding.
Top Venture Capital Firms
Venture capital is another option for startups. This type of funding is typically provided by investment firms or individual investors who are looking to invest in high-growth businesses. The advantage of venture capital is that it can provide a lot of growth capital for businesses. They most likely have staff members that have built startups as well and will provide advice on the various challenges you may face. This is important as the top venture capital firms can be great partners to your business. Think of it as a marriage… if you pick the wrong partner, you’ll feel quite lonely pretty quick.
The downside to venture capital is that they typically want a significant equity stake (and board of director seats) in the business. This is something to think seriously about since many startup founders have been forced out or fired from their own businesses when the Board feels another CEO could do better. Investors can lose patience fairly quickly when large amounts of money are involved.
Don’t miss out on our list of best venture capital firms for this year.
Below is a substantial list of the top global venture capital firms:
We partner with leading entrepreneurs and innovative growth companies to deliver value for our family and institutional capital partners. Since 1980, we have identified disruptive businesses with transformative potential and helped them scale globally. We do this by serving as true partners and leveraging our patient capital, operational expertise, and global platform.
Hillhouse Capital Group
We are entrepreneurs who happen to be investors.
Insight Venture Partners
For over 25 years we’ve partnered with the world’s leading software ScaleUps, providing the capital, operating guidance, and expansive network companies need to propel growth for the long term – and soar.
Entrepreneurs Backing Entrepreneurs. We partner with visionaries defining the future of their industries to transform the world.
Tiger Global Management
Tiger Global is an investment firm focused on public and private companies in the global Internet, software, consumer, and financial technology industries.
New Enterprise Associates
We are a global venture capital firm with a mission to make the world better by helping founders build great companies that improve the way we live, work, and play.
Norwest Venture Partners
We offer entrepreneurs a broad range of services to help them build their businesses at every stage of growth.
Institutional Venture Partners
IVP is a premier venture capital and growth equity firm with $8.7 billion of committed capital and a 40-year IRR of 43.1%. We invest in rapidly-growing technology companies and partner closely with exceptional management teams. Founded in 1980, IVP has invested in over 400 companies, 131 of which have gone public.
We are stage agnostic: We invest in seed to venture to late-stage technology companies, across bio + healthcare, consumer, crypto, enterprise, fintech, games, and companies building toward American dynamism. a16z has $33.3B in assets under management across multiple funds.
We believe the talent to build great companies comes from anywhere.
Redpoint partners with exceptional entrepreneurs starting at the earliest stages of the climb.
Bessemer Venture Partners
We make seed and Series A investments and stick with companies at every stage of their growth.
Drawing on our global relationships, experience in growing technology companies, and robust Portfolio Growth services, we’ll do everything we can to help you rapidly scale. Our approach is collaborative, agile, and efficient — providing support when and where you need it.
We are an entrepreneur’s most valuable partner over a long period of time. We engage early. We wear well. We are steady. We are the best firm for you on day one, and the best firm for you at $1B.
Bain Capital Ventures
BCV helps founders build iconic businesses that transform the way we live and work.
Lightspeed Venture Partners
Our mission is to serve the world’s most extraordinary people who are building tomorrow’s companies today.
We partner early—sometimes when a company is no more than an idea. We know these crucial first decisions can have an exponential influence on the curve of success.
At Greylock, our mission is to help realize rare potential. To do this well, we believe it’s essential to be trusted partners to entrepreneurs at every stage — from idea to IPO.
With venture and operational excellence at our core, we take a long view on investing. Having lived through it ourselves, we understand that inflection points are a natural part of a company’s growth and that the best companies are built over time. Our investment goes beyond capital to active company building at every stage. We provide a steady hand along the journey, including through the inevitable bumps on the way.
Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth.
We invest in smart people solving difficult problems, often difficult scientific or engineering problems.
Kleiner Perkins Caufield Byers
For five decades we have partnered with intrepid founders to build iconic companies that made history. Today, Kleiner Perkins continues that legacy, investing in founders with bold ideas that span industries and continents, partnering with them from inception to IPO and beyond to maximize the potential of their ideas… and make history.
We back founders and talented teams at all stages of growth, from startups to established market leaders. We are currently investing from our 13th family of funds capitalized at $2 billion.
SV Angel is a San Francisco-based venture fund. Over the last 30 years of early-stage investing, our core values of trust, loyalty, and integrity along with our founder-first approach have driven our strategy.
43North offers an opportunity to scale your business with funding and an immersive accelerator program like no other. Each year, we invest $5 million into startups, offering founders a chance to secure $1 million in funding, and gain access to a host of support services – from mentorship to connections to investors, and inroads to customers. We typically look for seed-stage startups that have a strong team in place, traction with customers, and received previous investment.
Created by Aramco in 2011 to ignite the spirit of entrepreneurship in Saudi Arabia, Wa’ed is an essential enabler of business transformation and economic diversification in the Kingdom, providing loan financing, venture capital investment, and incubation services to game-changing start-ups.
Softbank Vision Fund
GV (Google Ventures)
Ally Bridge Group
YC Continuity Fund
Highland Capital Partners
Draper Fisher Jurvetson
Dragoneer Investment Growth
New Leaf Venture Partners
Alumni Ventures Group
Jerusalem Venture Partners
Union Square Ventures
Equity Venture Partners (EVP)
The Ecosystem Integrity Fund
Brandon Capital Partners
Kaiser Permanente Ventures
Square Peg Capital
M. H. Carnegie
B Capital Group
Artesian Venture Partners
Element 8 Ventures
First Round Capital
Insignia Ventures Partners
Guinness Global Investors
NZ Growth Capital Partners
Plus Venture Capital
ff Venture Capital
King River Capital
Walden Venture Capital
Resource Capital Funds
Southern Cross Venture Partners
Recruit Strategic Partners
5square Committed Capital
Crane Venture Partners
Campus Founders Fund
Austech Founders Fund
Brooklyn Bridge Ventures
Besides the top venture capital firms listed above, crowdfunding is a newer type of funding that has become popular in recent years. This type of funding allows businesses to raise money from a large number of people, typically through an online platform. Each person might donate $10 to $50, but you’ll get a lot of people donating. The advantage of crowdfunding is that it can be a great way to raise funds from a large number of people. However, the downside is that businesses may need to offer rewards or equity stakes in order to attract backers.
To be successful with crowdfunding:
- Begin with a small but enthusiastic group (friends most likely) that are willing to tell others about you and urge their own friends to check you out.
- Have a legitimate business plan along with a video presentation showing what you plan on doing with the money.
- Show how you got this far, and that you have the skill set to take the business to the next level.
- Offer different rewards for different levels of investment
- Above everything else… when people start investing, make sure you keep up with communication and give routine updates on the status of the business. This is critical since most investors have never met you, and want some verification that you’re legit.
Below is a start to some of the Best Crowdfunding Sites
“Now anyone can fund your business.”
Kickstarter campaigns make ideas into reality. It’s where creators share new visions for creative work with the communities that will come together to fund them.
For women who have big ideas, we’re here to help make them happen.
GoFundMe is a trusted leader in online fundraising. With no fee to start a fundraiser and a team of safety experts behind you, you can raise money or make a donation with peace of mind.
Choosing the right type of funding for your startup business is an important decision. There are a variety of options available, and each has its own advantages and disadvantages. Be sure to do your research and choose the option that is best for your business.