When you’re looking for different way that you can obtain funding for your company, likely the largest source of funding can be obtained from venture capital firms. Venture capital is a kind of financing that investors are able to provide to small businesses and startups that show a high potential for long-term growth. This financing is particularly unique because the requirements are usually very strict for a company to receive this funding. Any small business or startup that wants to apply for venture capital financing will usually need to create a detailed pitch deck that shows prospective investors that they have a very good chance of growing exponentially in the years to come.
This form of capital is typically provided from investment banks, well-off investors, and similar financial institutions. The investors who provide venture capital financing are making these investments in the hope that they will provide substantial returns. Venture capital has become increasingly popular for younger startups that are looking to grow their company but need the funds to do so. Large companies like Apple, Google, and Facebook once received venture capital when they wanted to scale their company.
Unlike a standard loan, you aren’t required to pay back the venture capital funding that you receive. However, venture capital firms and individual investors who provide this form of financing will gain a percentage of your company. In the event that your company obtains success in the future, venture capital investors will receive high returns from the portion of your company that they own. The amount of venture capital financing that you can receive depends on which round of funding your startup is about to enter. Whether you’re seeking funding Series A funding or Series C funding, it’s possible to obtain anywhere from $2 million to more than $100 million from venture capital firms.
If you want to explore venture capital financing to determine if this type of funding is right for your startup, you should first learn more about the National Venture Capital Association. They are a vast member network of individual investors, venture capital firms, and corporate backers that want to invest their capital into new businesses and startups. Members of the NVCA gain access to many spectacular resources and networking opportunities that can prove to be invaluable for their careers. This article offers a comprehensive look at what the National Venture Capital Association is and why you might want to join it.
What is the National Venture Capital Association?
The National Venture Capital Association is a renowned organization that’s made up of many venture capital firms, individual investors, and corporate backers that want to invest their own capital into early-stage startups that have high growth potential. The group itself aims to represent, define, and serve the interests of the extensive venture capital community by promoting the interests of venture capital firms and entrepreneurs. For instance, some of the resources that they provide are designed to foster a better understanding of the role that startups play in the U.S. economy.
This organization first began in 1973 and has since built a network that’s represented in 35 states by everything from micro venture capital funds to mega funds. Their headquarters can be found in Arlington, VA, which is where they have been located since their founding. Today, they consist of over 400 separate member firms, which makes them the foremost trade association for the venture capital industry in the country. Along with improving the public’s knowledge of the benefits that venture capital firms provide to the greater U.S. economy, their goal is to support entrepreneurial innovation and activities. To this end, they offer practically endless resources for their members as well as the entrepreneurial community.
As mentioned previously, there are currently more than 400 members of the National Venture Capital Association, which has allowed them to build a strong venture capital ecosystem that serves to benefit entrepreneurs and young startups throughout the country. The venture capital firms and groups that are a part of the NVCA provide investments to numerous industries, which include the life sciences, healthcare innovation, biotechnology, energy, and emerging technology industry. Because of the vast number of members in the NVCA, they represent nearly all industries, which means that there’s a good chance that your startup could seek financing from one or more of the NVCA members.
Some of the more popular firms that are a part of the NVCA include:
- Cisco Investments
- Cleveland Clinic
- Dell Technologies Capital
- Golden Seeds
- Johnson & Johnson Innovation
- Samsung Catalyst Fund
Each of these venture capital funds and firms have provided startups and entrepreneurs in all kinds of industries with the funding that they need to succeed and scale their business. Most of these firms provide startups with venture capital funding as well as a significant amount of resources and assistance that can help startups of any size grow their business.
Companies and venture capital firms that become members of the NVCA are provided with advancement programs, comprehensive education, networking opportunities, and industry research. These resources can help the venture capital firms build their teams and make the right investments. When a venture capital firm makes a successful investment, this means that they are more likely to continue investing in startups in the future, which ensures that you will have many VC firms at your disposal when you apply for venture capital.
NVCA Industry Partners
Venture capital investors and the entrepreneurs that they represent will oftentimes require assistance from accountants, lawyers, bankers, and consultants to ensure that the investment process and future startup development goes smoothly. To make sure that their members have all of the assistance they need, NVCA has paired with many industry partners that have the expertise they are looking for. The industry partner program that is maintained by the NVCA ensures that the venture capital ecosystem is a strong and healthy one.
In order to become an industry partners with the NVCA, the firm must provide at least $5,000 in sponsorships on an annual basis. These sponsorships can be applied on the IPO, series B, series A, or seed funding levels. Some of the most popular partners of the NVCA at the moment include:
- Silicon Valley Bank
- Goodwin Proctor
- VMS Fund Administration
- William Blair
When a firm become an industry partner with the NVCA, they benefit by being able to work directly with the NVCA on public policy initiatives, events, and content throughout the year, which means that they play a significant role in determining how the NVCA functions.
How Does NVCA Help You Succeed?
The NVCA can help your startup succeed by providing you with access to the venture capital firms that have become members at the NVCA. When one of these firms invests into your startup, they will have ample resources and an entire network of professionals at their disposal that can help in making sure that the investment was a sound one and that your growth as a startup goes according to plan.
If you decide to join the NVCA as a member, you will gain access to many resources and benefits that will help you succeed. For instance, you will be able to attend industry events at a discount that pertain to growing a startup and making venture capital investments. It’s also possible for members of the NVCA to shape policy agenda by participating in such issue-working groups as life sciences and foreign investment.
Some of the members-only programs that you will have access to include educational webinars, policy briefings, and networking events. The many other member opportunities that are available to you include exclusive access to their newsletter, participation in peer groups, and reduced pricing on the events that are hosted by industry partners of the NVCA.
Joining the NVCA
If you decide to join the NVCA, you can do so at this link. You will be tasked with filling out an extensive application, which can be completed in around 20 minutes. In order to become a member of the NVCA, you must be a part of a venture capital firm that’s dedicated towards private equity funding. The amount of funds within your VC firm determines how much you will pay in annual membership dues. If the fund that your firm manages is valued at $1 million to $4.9 million, you will pay at least $1,500 in annual dues. If the capital under management is higher than $3.4 billion, these dues increase to a flat fee of $43,250.
When you go to fill out the application, you will need to provide your full name, phone number, business address, your type of organization, when you were founded, and how much capital is available through your firm. In order to become a member, you must also obtain two individual references from other member firms of the NVCA that are familiar with your group. With this information in hand, the application process should be relatively straightforward.
Learning More About the NVCA
If you want to learn more about the NVCA and are interested in joining, make sure that you visit their official website. From here, you can gain access to all of the features that they provide, which can be very helpful when you’re trying to grow your business or want to learn more about the many investment opportunities at your disposal. You can also check out this article if you want more information about what the NVCA is and what they stand for.
The NVCA is a highly successful venture ecosystem in the U.S. that can give you access to the venture capital financing that you need to scale your business. If you’re interested in making investments with other startups in your industry, the NVCA provides its members with everything they require to make smart investments and to properly grow their teams. While the NVCA doesn’t provide venture capital financing directly, they’ve created a group that fosters a strong venture capital community that knows how to make the right investments and will be able to fuel the economy of the future. Because of how reputable the NVCA is, you can be confident when applying for VC financing from any of the companies and venture capital firms that are currently members of the NVCA.
Whether you’re looking to obtain venture capital financing or are thinking about creating a micro VC fund to make sure that other startups in your industry obtain the help that they need, the NVCA is a great place to start. If you have just recently developed a life sciences startup and are in need of some resources, consider joining a wet-lab incubator.
Here at University Lab Partners, we provide a highly useful wet-lab incubator that includes all of the latest technology and wet lab space that you would need for product development and research. Apply now to Orange County’s first wet lab incubator encompassing a local professional network and outstanding university resources!