Last Updated: April 27, 2023
The process of raising enough capital is the backbone of every startup. But company founders will agree that it is easier said than done. With a limited operating period, few assets and no reputation to rely on, convincing investors, ie. venture capital firms, to fund your startup is always a challenge. Over the years, various financial instruments have developed to make the fundraising process simpler for startup founders. Venture capital firms are among them.
In this article, we will discuss venture capital funding in detail and also provide a comprehensive list of the most active 100 venture capital firms you can reach out to. Let us begin with the basics.
Venture Capital Funding
Certain financial institutions called venture capital firms have evolved over the years, specializing in investing in early-stage companies. Their funding pattern is designed in a way that they specifically choose high risk emerging businesses to invest in, have a short engagement period, and exit with massive profits. These firms are run by partners known as venture capitalists. Let us discuss these in detail.
What is venture capital funding?
Venture capital funding is a subset of private equity. This pattern of funding is gathering popularity in the startup marketplace and increasingly becoming essential as well. Venture capital is best suited for companies with short operating periods lacking access to capital markets or opportunities for business loans. Most venture capital firms are professionally managed and demand higher interest rates in comparison to stock market investments. All partners have limited ownership while the firm makes investment decisions usually in favor of avenues that most banks and capital markets would deem too risky.
Why do businesses look for venture capitalists for company funding?
Companies raise operating capital in two ways, debt finance and equity finance. Startups and early-stage companies usually cannot afford debt finance due to their high-risk profile and inability to present collaterals. Even in the case of equity financing, these seed-stage companies may not have enough takers for their shares due to a lack of established metrics that justify their success. Hence in such cases, venture capital funding becomes the go-to option as they are designed for investments in this sector. Here are some specific advantages of venture capital funding:
- Expertise – Venture capitalists are usually successful entrepreneurs themselves. Since they get involved in the decision making of the companies they are funding, their expertise is a valuable addition to the startup apart from their invested capital.
- Focused approach – Venture capitalists limit their engagement period with the investing company ensuring a well-planned utilization of their funds. It could be anywhere between 4 – 6 years. The company seeking venture capital must have an exit plan in place which must either target acquisition or IPO. The venture capital firm will handhold the company through this process and will enjoy massive profits once the company succeeds in achieving one of the two exits.
- No repayment –This is a unique feature of venture capital funding. They invest big and want the companies to grow quickly. But if the company fails, entrepreneurs are not liable to return the money as would be required in regular loans. Venture capital firms take calculated risks and adhere to strict guidelines that ensure that if at all a startup was to fail, it would be due to unprecedented market forces and a collective loss with minimal chances of foul play.
- Network – Since venture capitalists are business giants themselves, a startup engaging with them automatically gains access to the partner’s networking channels. This may open up advanced funding avenues for the company as well as improve access to a pool of professional talent needed for the company to expand.
Finding Right VC for your Company
At the onset, one must know that the majority of startups applying for venture capital funds will be declined. According to Business magazine Inc., only a mere 0.62% of startups manage to secure VC funds. This low rate indicates the precision with which venture capitalists select the businesses worth their time and money. However, there is no reason to be disheartened. A methodical approach to this funding process will win you the much-awaited funds from a top venture capital firm. Before approaching a firm, let us first understand the different stages of venture capital funds.
Types of venture capital funding
A venture capitalist does not prefer to enter a business either too early when the product viability has not yet been tested or too late when the markets become competitive. Though they are known to invest in all of the following categories, a startup stands a much better chance if they have secured the preliminary funds from other sources. The three tiers of venture capital funding are:
- Startup stage – Also known as the pre-seed stage, this is the point when the startup is crossing the idea stage and moving into product development. Funding at this stage helps the company to set up its operations. Usually, founders seek startup funding from close, reliable sources such as friends and family or approach angel investors. A venture capitalist may show interest at this stage only if the idea is compelling and they see profits in backing this company right from inception. However, normally they invest in the later stages.
- Seed stage – This is the stage when the company plans to use its product or service to test the market. At this point, they would not have begun large scale commercial operations. Venture capital firms largely target this stage to make their entry. Funding can be anywhere between $10,000 and $2 million.
- First-round – Also known as the ‘Series A’, this stage of funding is best suited for companies with a go-to-market strategy in place. They usually have a product team and are ready to scale up to commercial manufacturing and sales. ‘Series A’ funding ranges between $2 million and $15 million. The most common investment is $5 million. Since it is a substantial amount of money, the startup must have a business model in place and are expected to use this money to raise revenue as well. To secure these funds, the business now must show promise of becoming a great company.
By now we have gathered a fair idea about venture capitalists and their funding options. The next section provides a comprehensive list of 100 active venture capitalist firms detailing their investments and operating industries.
Best 100 Active Venture Capital Firms in 2023
A venture capitalist has access to a large fund but a short window to generate huge returns. On average, 1 out of 20 investments holds promise for high returns. Hence the partner has to be choosy about investments as the returns not only have to generate additional funds for the venture capital firm, but also cover for the losses incurred in high-risk investments. Entrepreneurs must be well equipped with the nature of operations of their target VC. The following information aims to provide a good starting with a list of the top venture capital firms:
|Organization||Location||Number of Investments||Number of Exits||Key Investments|
|Techstars||United States||4,765||415||Uber, Groupon, DataRobot|
|500 Global||United States||2,991||353||Grab, Reddit, CARS24|
|SOSV||United States||2,496||63||Getaround, Perfect Day,TIER Mobility|
|New Enterprise Associates||United States||2,100||567||Uber, DiDi, ByteDance|
|Accel||United States||1,901||354||Meta, Flipkart, Ola|
|Sequoia Capital||United States||1,769||358||Uber, Ant Group, OpenAI|
|Bossanova Investimentos||Brazil||1,690||145||Robinhood, Palantir technologies, Swiggy|
|Plug and Play||United States||1,564||153||Rappi, N26, Hippo insurance|
|Intel Capital||United States||1,539||484||Reliance Jio, Clearwire, One97|
|IDG Capital||China||1,425||149||Meituan, Tencent, Xiaomi|
|Andreessen Horowitz||United States||1,343||198||Twitter, OpenAI, Airbnb|
|Bessemer Venture Partners||United States||1,312||292||Swiggy, Bright Health Group, Snapdeal|
|FJ Labs||United States||1,195||79||Uber, Ant Group, Klarna|
|Tiger Global Management||United States||1,143||131||Meta, Grab, JUUL|
|General Catalyst||United States||1,139||180||Airbnb, Snap, Instacart|
|Advantage Capital||United States||1,121||119||Medtronic, Recursion Pharmaceuticals, Soli Organic|
|Khosla Ventures||United States||1,070||151||OpenAI, DoorDash, Instacart|
|GV||United States||1,017||231||Uber, Robinhood, Flexport|
|Insight Partners||United States||985||194||WeWork, Twitter, Delivery Hero|
|Sequoia Capital China||China||974||101||Meituan, ByteDance, Xpend Motors|
|Goldman Sachs||United States||955||335||Xerox, Uber, DiDi|
|Global Founders Capital||Germany||917||65||Meta, Grover, Roket Internet|
|GGV Capital||United States||879||130||DiDi, Grab, ByteDance|
|Norwest Venture Partners||United States||876||189||Swiggy, Yatra, Opendoor|
|Battery Ventures||United States||827||202||Databricks, N26, Wayfair|
|Founders Fund||United States||821||136||Meta, Spacex, Airbnb|
Immunic Therapeutics, EGYM
Wholesum Brands, XanPool
|Greycroft||United States||761||121||Bright Health Group, Pacaso, Archer|
|Menlo Ventures||United States||741||170||Uber, Chime, Carta|
|Crowdcube||United Kingdom||707||13||Klarna, Qonto, Nothing|
|Matrix Partners China||China||674||44||DiDi, Xpeng Motors, Yuanfudao|
|Benchmark||United States||661||179||Uber, WeWork, Twitter|
|Matrix Partners||United States||640||150||Xiaomi, Ola, Apple|
|Innovate UK||United Kingdom||639||41||Freeline,
|Mayfield Fund||United States||634||187||Lyft, SolarCity, Jawbone|
|Gaingels||United States||627||22||Databricks,EquipmentSharer, CommonBond|
|Sequoia Capital India||India||624||62||Gojek, BYJU’S, Ola|
|Lerer Hippeau||United States||617||150||Oscar Health, Toss, GoodRx|
|BoxGroup||United States||600||106||Flexport, Oscar Health, Ramp|
|Almi Invest||Sweden||595||35||BONESUPPORT, Fishbrain, CorPower Ocean|
|OrbiMed||United States||594||219||Insmed, SAGE Therapeutics, Invitae|
|East Ventures||Japan||549||52||Traveloka, Tokopedia, Xendit|
|Global Brain Corporation||Japan||529||82||PatSnap, Lime, Solarisbank|
|Seedcamp||United Kingdom||526||58||Revolut, Grover, UiPath|
|BDC Venture Capital||Canada||522||120||Zymeworks, Sonder, Hopper|
|Northstar Ventures||United Kingdom||513||23||Eco Plastics, Amplience, Fairstone
|Partech||France||512||96||Toss, auxmoney, SellerX|
|Temasek Holdings||Singapore||499||114||DiDi, Ant Group, Meituan
|Madrona||United States||475||94||Highspot, UiPath, Snowflake|
|Vertex Ventures||Singapore||461||94||Grab, Semiconductor Manufacturing International, Horizon Robotics
|Warburg Pincus||United States||449||140||Ant Group, Allied Universal, Airtel
|Shunwei Capital||China||444||29||Xiaom, Xpeng Motors, NIO
|LAUNCH||United States||443||45||Robinhood, Desktop Metal, Zenefits
|ARCH Venture Partners||United States||442||100||Altos Labs, Alnylam Pharmaceuticals, SAGE Therapeutics
|Startup Wise Guys||Estonia||435||7||Bolt, Skeleton Technologies, kevin
|Lux Capital||United States||431||50||Anduril Industries, Resilience, Ramp
|Hillhouse Capital Group||China||424||64||Grab, Sea, Delivery Hero
|General Atlantic||United States||418||144||Meta, Uber, Reliance Jio
|Shasta Ventures||United States||415||85||Nextdoor, Spire Global, Zuora
|SoftBank Vision Fund||United Kingdom||413||50||Uber, WeWork, Grab|
|Legend Capital||China||408||40||Zuoyebang, UCAR, Horizon Robotics
|8VC||404||31||Flexport,Anduril Industries, Resilience
|Northern Light Venture Capital||China||403||43||Meituan, BGI Group, Missfresh
|Uncork Capital||United States||402||102||Postmates, Eventbrite, DNAnexus|
|Speedinvest||Austria||400||22||wefox, Curve, Wayflyer|
|Coatue||United States||396||39||Uber, DiDi, Meituan|
|Newchip||United States||395||4||Dastgyr Technologies, SuperSim, Bloomfield Robotics
|F-Prime Capital||United States||391||82||Devoted Health, PharmEasy, Blueprint Medicines
|International Finance Corporation||United States||390||87||Nubank, BYJU’S, Plug Power
|Business Growth Fund||United Kingdom||388||73||Gousto, Paddle, Elvie|
|Western Technology Investment||United States||388||131||Meta, Thrasio, Kabbage|
|Entrepreneur First||United Kingdom||378||23||Proportunity, Omnipresent, Cleo|
|GSR Ventures||United States||378||23||DiDi, Xingsheng Youxuan, ELEME
|IVP||United States||373||129||Netflix, Uber, Twitter|
|Par Equity||United Kingdom||362||14||pureLiFi, Current Health, Sunamp
|LocalGlobe||United Kingdom||356||55||Robinhood, Wise, Improbable|
|NFX||United States||354||28||Lyft, HoneyBook, Ribbon Home
|Foundry Group||United States||351||77||Zynga, AvidXchange, Knock|
|ff Venture Capital||United States||351||29||Socure, Surf Air, Cornerstone OnDemand
|Correlation Ventures||United States||350||68||Getaround, Bluevine, Knock|
|(ERA) Entrepreneurs Roundtable Accelerator||United States||346||32||Katapult, Thirty Madison, Glia
|StartUp Health||United States||346||32||Devoted Health, Cityblock Health, Virta Health
|Draper Associates||United States||345||63||Carta, Thumbtack, Coinbase|
|FirstMark||United States||344||54||Airbnb, Pinterest, Digital Currency Group
|Accomplice||United States||339||61||Snap, DataRobot, Klaviyo|
|Sapphire Ventures||United States||325||95||One97, Cazoo, Wise|
|Nexus Venture Partners||United States||323||45||Snapdeal, Delhivery, Clover Health
|OurCrowd||Israel||322||48||KLOOK, Honeybook, Innoviz Technologies
|Thrive Capital||United States||312||65||Robinhood, Fanatics, Nubank|
|Horizons Ventures||Hong Kong||312||46||Meta, Airbnb, Spotify|
|US Department of Commerce, Economic Development Administration||United States||312||Emory University, The University of Texas at Austin, University of California, Los Angeles
|BlueRun Ventures||United States||311||40||Chehaoduo, Kabbage, Li Auto
|Fidelity Management and Research Company||United States||308||150||WeWork, Grab, Twitter|
|Earlybird Venture Capital||Germany||306||47||UiPath, N26, OneFootball|
|Alameda Research||Hong Kong||303||5||Fanatics, Genesis Digital Assets, Toss
|Goodwater Capital||United States||303||8||Getir, Toss, Monzo|
|Eleven Ventures||Bulgaria||302||4||Payhawk, Quantive, DRONAMICS|
|Village Capital||United States||300||16||Gretel, MPOWER Financing, Yaba
|Seedrs||United Kingdom||300||16||LANDBAY, Revolut, Tandem|
This comprehensive list was gathered from public data online, mainly from sources like Crunchbase, CB insights and others. This data is for informational purposes only. Should you have any suggestions on updates to this data, you can contact us at firstname.lastname@example.org and we will gladly follow up with you.
List of Important VC Firms
Further to the 100 active venture capitalist firms mentioned above, based on their funding history, we have narrowed the listing to the 15 most important. The following section provides a brief about each of these VC firms.
Techstars aids several of the most successful business owners in securing funding, receiving guidance from industry experts, expanding their client base, developing their workforce, and selecting optimal IT infrastructure. More than 4,765 businesses have received funding from Techstars. Diverse industries like HealthTech, FinTech, Web3, and CleanTech in regions from Miami, and Silicon Valley to Lagos, and London have benefitted from their investments. Their portfolio is one of the biggest pre-seed investors in the world and is as varied as its 7,300 entrepreneurs. Their key investments have been Uber, Groupon, and DataRobot.
2. 500 Global
500 Global is a $2.7B venture capital fund that backs entrepreneurs that are creating disruptive technologies. Their main interest is in developing countries and emerging markets where long-term wealth may be unlocked through technological innovation and investment. They have made 2,991 investments in over 150 firms worth over $100 million in their portfolio, 49 of which have valuations of over $1 billion. More than 180 people are working for them from 27 different countries, all of whom have backgrounds as founders, investors, or administrators at some of the best software businesses in the world. Their key investments include Grab, Reddit, and CARS24.
SOSV is a worldwide VC company that invests in startups at several stages, beginning with their custom pre-seed startup development programs for entrepreneurs building game-changing products. SOSV ranks among the most prominent venture investors worldwide, with 2,496 investments of over $1.5 billion under management and almost 300 investments annually, involving 100+ pre-seed financing in new startups. Supporting ambitious deep-tech startups with the potential to improve human and environmental health to a substantial degree is key to their work. Their notable investments are Getaround, Perfect Day, and TIER Mobility.
4. New Enterprise Associates
Their portfolio is led by pioneering businesspeople who are developing game-changing innovations and building market leaders of the future. Successful businesspeople from varied industries have joined as Venture Partners at NEA, bearing extensive knowledge in their respective fields and extensive professional connections. NEA is at the forefront of technological development, with offices on both coasts of the United States and a growing worldwide presence. With around 2,100 investments made across industries like Financial Services, Health Care, Lending, and Investment, NEA’s key investments have been Uber, DiDi, and ByteDance.
Accel, a venture capital company, has announced the second round of ten companies to participate in its Atoms program. These firms get $250,000 in non-dilutive funding, one-on-one guidance from successful Indian businesspeople, and exclusive worldwide Accel network membership. In all, Atoms has funded 23 firms over two cohorts. These startups represent a wide range of industries, including software as a service (SaaS), business-to-business markets (B2B), web-based direct-to-consumer (D2C), hardware, and health and wellness. With at least 1,901 their significant investments remain Meta, Flipkart, and Ola.
6. Sequoia Capital
From inception through initial public offering and beyond, Sequoia is there to support risk-taking entrepreneurs as they create tomorrow’s household names. Their purpose is to encourage entrepreneurs to think beyond the box. More than a quarter of NASDAQ’s market cap comes from firms funded by Sequoia. From the outset, the bulk of these investments have been made on behalf of charitable organizations and educational institutions like the Ford Foundation, Mayo Clinic, and MIT, so the work of these founders has a real-world impact. They have made at least 1,769 investments and the most prominent ones are Uber, Ant Group, and OpenAI.
7. Bossanova Investimentos
The Brazilian venture capital firm Bossanova invests in startups in the technology sector. Members of their team have experience in founding or growing technological companies. This provides them with an insider’s look at the challenges of starting and running a firm. They prefer businesses with a SaaS or Mobile specialization and work mostly with B2B clients. Their key investments include Robinhood, Palantir Technologies, and Swiggy and their total investments have been over 1,690 across various industries.
8. Plug and Play
Across a wide range of sectors, this network includes over 50,000 new businesses, 500+ Leading multinational companies, and hundreds of VCs, colleges, and government organizations. They are aiming to build an innovative ecosystem for the creation and deployment of future technologies in collaboration with their partners. Plug and Play connects Silicon Valley with over 30 other offices worldwide. They have made over 1,564 investments across industries and the most significant among them are Rappi, N26, and Hippo Insurance.
9. Intel Capital
Intel Capital, located in Santa Clara, California, was established in 1991 as the business venture capital division of Intel. The company’s primary investment focus is on seed and early-stage companies in the Silicon Valley, Frontier, Gadgets, and Cloud regions of the technology ecosystem. Their portfolio includes involvement with Reliance Jio, Clearwire, and One97 from the overall 1,539 investments so far.
10. IDC Capital
When it comes to China’s venture capital industry, IDG Capital has been a frontrunner since 1993. They have access to a comprehensive variety of services in branding, marketing, channel development, international expansion, human resources, finance, and management to aid their portfolio firms in achieving sustainable growth. The seven sectors that IDG Capital invests in include Technology, Media, and Telecommunications (TMT), New Consumption and Services (NSC), Consumer and Entertainment (C&E), Healthcare (HCA), Advanced Manufacturing (AMC), and Clean Technology and Energy (CEC). With 1,425 investments made across the globe, its noteworthy involvement has been in Meituan, Tencent, and Xiaomi.
11. Andreessen Horowitz
Andreessen Horowitz, sometimes abbreviated as “a16z,” was co-founded by Marc Andreessen and Ben Horowitz in 2009 in Silicon Valley to invest in risk-taking entrepreneurs who are shaping the future of technology. From early-stage startups to more established enterprises, they back innovative businesses in the bio, healthcare, consumer, cryptocurrency, enterprise, financial services, gaming, and United States economic growth sectors. The total amount of money that a16z accounts for is $35 billion. Twitter, OpenAI, and Airbnb are among the most notable investments across its 1,343 total investments so far.
12. Bessemer Venture Partners
In order to create successful businesses with lasting longevity, Bessemer Venture Partners aids entrepreneurs in establishing solid groundwork. Bessemer helps CEOs and founders of its more than 200 portfolio businesses in the corporate, consumer, and healthcare sectors at every step of development. More than $20 billion are managed by Bessemer, and its worldwide portfolio includes 1,312 investments in companies including Pinterest, Shopify, Twilio, Yelp, LinkedIn, Swiggy, DocuSign, Snapdeal, Fiverr, and Toast. Partners and investors from Bessemer are spread around the globe, with offices in Tel Aviv, Silicon Valley, New York City, London, Boston, Beijing, and Bangalore.
13. FJ Labs
FJ Labs is a VC business with its headquarters in New York City. It was founded in 2015. The company is looking for investment opportunities in all sectors and regions. They have invested in 1,195 projects across industries like Commerce and Shopping, Financial Services, Lending, and Investments. Their key investments include Uber, Ant Group, and Klarna.
14. Tiger Global Management
Investment business Tiger Global specializes in both public and private firms in the Internet, development, consumer, and fintech sectors throughout the world. They offer financial services to well-managed firms that are reaping the rewards of strong secular growth patterns. Their private equity division has been making investments in businesses from Series A to the pre-IPO stage since 2003. The most significant of their 1,143 investments to date include Meta, Grab, and JUUL.
15. General Catalyst
Being an early-stage and transformative investor, General Catalyst is a VC company. Airbnb, BigCommerce, ClassPass, Datalogix, Datto, Demandware, Gusto, The Honest Company, HubSpot, Warby Parker, Oscar, Stripe, Snap, and KAYAK are just some of the firms that have received funding from General Catalyst. The team at General Catalyst uses its extensive background to aid entrepreneurs in creating groundbreaking businesses and has been involved in 1,139 investments. The General Catalyst team is spread across three locations: Cambridge, Massachusetts; Palo Alto, California; and New York City.
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