What is a venture capital? What does it do?
A venture capital is a type of private equity firm that provides financing and/or funding for early-stage companies and start-ups. The type of companies that are ready to raise funds from a venture capital is those that have shown high amounts of growth and have high growth potential. Raising money through a venture capital could be highly beneficial because it can provide companies with funding and other resources that will help them develop new products or enter a new market.
Top working capital firms in the world
Below is a list of the top venture capitals in the world that have made a large amount of investment:
Table 1 Top Venture Capital Firm in 2020
According to the table above, Intel Capital is that the highest ranking company among in the list that has made more than 1,300 investments with an investment-to-exit ratio of 28.5% which amounts to 381 exits. Their main portfolio is technology based start-ups including but not limited to digital media, software, and hardware companies.
The second one is Kleiner Perkins. Ever since it was founded in 1972, they have made a total of 1,136 investments, 240 of which have gone to IPO. While their initial investments focused around software and hardware industries, they have expanded to biotechnology, mobile, healthcare, and internet industries.
The third one is Accel. It was founded in 1983, they have made many notable investments, which includes Dropbox and Facebook. Since their main forte during this are highly versatile risk capital firms that mainly invests in early-stage and growth-stage start-ups.
The fourth one is Sequoia Capital which was founded in 1972. Their investments are made to private and public companies that are operating in China, India, and Israel. Sequoia Capital has made around 1,275 investments, 265 of which were successful exits for a ratio of 20.71 percent. Being the lead investor, more than 63 percent of the companies that they invested in made it to IPO. Some of the notable exits include NVIDIA and Instagram.
The last three firms, New Enterprise Associates, Bessemer Venture, and Khosla Ventures each made of 1,589, 910 and 707 investments. These firms even have their own preference on the industries. New Enterprise Associates specialise in the technology and healthcare industries with their investments, Bessemer Venture in investing in philosophy thanks to its expansive scope/project, and Khosla Venture specializing in providing funds to early-stage start-ups.