This 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 for your business venture.

Know What You Need

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

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

If you couldn't answer the "Capital Questions" effectively, you're likely not ready to contact VC firms for backing.  Instead, other equity options listed below might prove useful for you.  For inspiration,  read an overview of Ed Palmer's equity success story with his company SolarAttic Inc. (available in the September 1999 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 determine which projects to finance.

To learn more about the many ways to obtain financing for your small business, check out the Telecommunications Development Fund. 

Overviews of Venture Capital

"The Art of Getting Funded", a March 1999 article in Electronic Business, "the management magazine for the electronics industry". "Many entrepreneurs mistakenly believe venture capitalists are looking for good ideas when, in fact, they are looking for good managers in particular industry segments." -- Paul Gibson, "The Art of Getting Funded" The opening chapters of Pratt's Guide to Private Equity Sources [Ref HG 65 G94; older copies in the stacks] are very informative.  They cover such topics as:  the background of venture capital; "characteristics of a successful entrepreneurial management team"; how to "choose and approach a venture capitalist", etc. WetFeet 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 those interviewing with VC firms, it's an appropriate resource for entrepreneurs as well.  Learn what really interests partners in these firms. The Growth Company Guide to Investors, Deal Structures, and Legal Strategies is a large reference text freely available online.  It provides short descriptions of key topics such as joint ventures, windows, incubators, and venture 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 pitch your idea to a VC firm that backs only wireless technology solutions.  It's imperative that you know which firms are interested in your type of project.  Some even have geographic restrictions, and only fund companies in certain areas of the USA / world.   The print and electronic resources below will help you determine which VC firms back your company's particular niche.

AMERICAN VENTURE  CAPITAL FIRMS
Selected Lists of Firms: PriceWaterhouseCoopers' MoneyTree Survey VC Funds database -- Provides Q2 1999 information arranged by state/region, industry, or in an alphabetical list of investees. A comprehensive print resource is Pratt's Guide to Private Equity Sources [Ref HG 65 G94; older copies in the stacks]. The Corporate Finance Sourcebook [Ref HG 4057 A19, on Financial Services Tables; older copies in the stacks] -- The data in this resource is collected from surveys completed by each firm.  Lists personnel, areas of funding interest, etc.
INTERNATIONAL VENTURE CAPITAL FIRMS
Selected Lists of Firms: The European Venture Capital Association maintains two searchable databases (one for entrepreneurs, another for investors) which allow sophisticated searches by industry, country, stage of enterprise, estimation of financial needs, etc. A Guide to Venture Capital in Asia [Ref. HG 86 g85 9th 1998] is a print publication that provides not only lists of firms in particular countries but also a detailed survey of the Asian VC industry. Venture Capital Marketplace, an Australian company, maintains a list of international VC firms.   However, sometimes only a firm's name and country is provided. The Venture Capital Resource Library has a master list of VC firms.  It is searchable by industry. Investor Links maintains a large, alphabetical list with direct links to a firm's website. Chapter 17 of The Corporate Finance Sourcebook [Ref HG 4057 A19, on Financial Services Tables; older copies in the stacks] lists non-American firms who 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 following alternate routes will be:

• Business Incubators -- For entrepreneurs who need lower cost office space, research equipment, and mentoring as their company grows.  There are many state-administered incubators, as well as ones associated with universities.  In Upstate New York, for example, Syracuse University and Renssalaer Polytechnic Institute both house incubators.
  
  NOTE:  "Internet incubators" is sometimes used to describe those incubators interested especially in high-tech projects.

Business Incubators
National Business Incubation Organization -- A  premier source of business incubation information.  Provides a searchable database of local and international incubators.

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

Angel Investors

Ace-Net -- "Angels' Capital Electronic Network" is a SBA-sponsored service that helps companies launch DPOs (direct public offerings).  Also serves to link investees and investors without going the DPO route. Garage.com -- Launched in 1998, the company seeks to partner hot projects with either angels, select venture capitalists, or corporate venture-capital divisions.  There will be a "bootcamp" in Boston on September 20-21, 2000. (Note:  Students can attend the bootcamps for reduced rates.) "Highway to Heaven" is a June 1999 Entrepreneur Magazine article that covers both angel investing and business incubation.

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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 by government or other agencies. 

Government Funding for Small Businesses
US Small Business Administration (SBA) -- A great starting point for government funding opportunities.  Allows you to choose a specific SBA office in your area and see what services it offers. US Small Business Innovation Research Program -- This program targets entrepreneurs and includes selected grant opportunities.  (Peruse a list of 1997 SBIR 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 "venture capital fairs" or "entrepreneurial conferences". These events are sponsored by VC firms, small business associations, or related financial organizations, and give attendees a chance to gain valuable exposure to the industry players.  Interactions are more informal than official "pitch" meetings, in part because it's usually not the firm's partners who attend, rather their analysts, who are junior members of staff.  Note that several of the links below will lead to "fairs" that took place earlier this year; check these sites again for updated information on future events.

Selected Conferences and Fairs

North America: Early Stage East -- Primarily for East Coast ventures. Entrepreneur America's Bootcamp -- "The Boot Camp in Montana is a major opportunity for selected entrepreneurs to obtain first hand coaching on the key areas of their high-tech start-up businesses. The program is an interactive forum in which Rob Ryan, the founder of Ascend Communications, mentors and assists entrepreneurs in the development of the businesses." Rob Ryan was Cornell's 2002 Entrepreneur of the Year. Springboard 2000 -- The "first ever venture capital forum to showcase women entrepreneurs."  Forums scheduled across the USA, in Silicon Valley, New England and the Mid-Atlantic. VentureOne, a venture research firm.  They hold a series of venture conferences throughout the year.

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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 an excellent way to gauge what you specifically need to do in your equity search.  Most of the resources below are case studies or contain information about particular companies. 

Selected Articles
"Soul Proprietor" -- "The saga of SmartRay Network Inc offers a powerful reminder of what real entrepreneurship is all about."  An August 2000 Fast Company article.
Selected Periodicals
Business 2.0 -- This magazine covers technological innovations and considers itself the "magazine of business in the Internet Age".   Available in paper [HF 5548.32  B87] Entrepreneur Magazine, as its title suggests, targets entrepreneurs.  It's available in paper [HF 5001 I61] and also electronically via ProQuest Direct. (Full journal via Factiva.) Fast Company -- They "strive to provide a big picture of the New Economy." (Full journal via Factiva.) Next Wave -- PriceWaterhouse Coopers' e-publication of "ideas for private equity investors and entrepreneurs in the technology industry." Red Herring -- They cover the "business of technology" and provide very good coverage of startups, venture capital, and entrepreneurial activities. (Full journal via Factiva.)
...and More
The Management Library has prepared an exhaustive list of primarily print resources for entrepreneurship.  This list was created for NBA 300 and NBA 564 students, but will prove helpful for anyone interested in entrepreneurship. The Forum for Women Entrepreneurs has an excellent list of selected funding resources.

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