Venture Capital Resources

Somewhat ironic question but how do venture capital firms raise money?

How do venture capital firms raise their money?

Public Comments

1. At a wild guess, such firms started out as one person or family who had money. Venture Capital isn't free money, it's an investment in an idea, so obviously if a FIRM is making money, it has much money invested in various ideas, earning a dividend or percentage of the idea's revenue, when it's successful... never heard of a venture capital FIRM however.
2. Most venture capital firms raise most of their money from what are called institutional sources such as pension funds, college endowments, and large corporations. Wealthy individuals and large family trusts also invest. Typically, one must have quite a bit of money (e.g. several million) to be allowed in. The venture capitalist pitch to these sources much like entrepreneurs pitch their business ventures to the VCs. The VCs give a presentation outlining their expertise, team members and investment strategy to the potential investors.