Venture Capital is the financial capital provided to the companies in the early stage to the potential start-up companies and it is fuel to the entrepreneurial spirit. They play the role of “king maker” in an economy and they decide which startups can emerge as a market leaders. Venture Capital firms hold an unrestricted impact on the countries economy, society and culture by promoting the disruptive technologies, game changing corporations and revolutionizing inefficient markets.
In addition to the angel investor and other seed investors, venture capital is attractive for the new companies with the limited operating history which are very small to raise capital in the public markets. Here is the list of some best global venture capital firms.
1. Andreessen Horowitz
Andreessen Horowitz is the $4 billion venture capital firm founded by Marc Andreessen and Ben Horowitz in 2009 and headquartered at Menlo Park, California. In August 2009 it made its first investment, backing SaaS developer Apptio and in September it invested $50 million in Skype stock. In February 2011, Andreessen Horowitz invested $80 million in Twitter, becoming the first venture which held stock in all four highest valued, social media companies like Groupon, Facebook, Zynga and Twitter. It also invested in other high tech companies such as Lytro, Airbnb. Belly, Foursquare, Jawbone and more.
In 2013, it invested in the startups such as Oculus Rift, Soylent, Ripple, Pixlee, coinbase, Clinkle, One Month, Swiftype and more. In 2014 it invested $90 million in the security and systems management company Tanium and $50 million in Buzzfeed.
2. Union Square Ventures
This is the New York headquartered venture capital firm founded by Fred Wilson and Brad Burnham in 2003 and it manages assets totaling $650 million as of January 2014. It is the leanest and most effective venture capital firm in the New York startup ecosystem and their principle success comes from their multiple yet distinct focuses with the lots of funds each serving different facets of entrepreneurship. Their investments are mostly United States based internet and mobile companies considered to be disruptive. They have been in the industry for more than 15 years in which they helped to launch more than 120 companies.
3. Khosla Ventures
It is the venture capital firm that focused mainly on the early stage companies in the computing, mobile, silicon and internet sectors. It was founded in 2004 by Vinod Khosla who is the general partner of Klenier Perkins Caufield and Byers. With approximately $2.3 billion total funds, Khosla has developed reputation as ‘no fear’ Virtual Capital firm. They specialize in the high-risk ventures which include the startups in the alternative energy sectors and have been very successful in predicting which industries will emerge and which will sink.
4. Sequoia Capital
Sequoia is the oldest venture capital firm founded by Don Valentine in 1972 and based in Menlo Park, California. This firm specializing in seed stage, incubation, early stage, start-up stage and growth stage investments in both public and private companies. The Wall Street Journal called Sequoia Capital as one of “highest caliber venture firms” in world. The funded unprecedented number of successful startups such as Apple, Yahoo, PayPal, Google, Electronics Arts, Oracle, YouTube and Cisco Systems. Stats reveal that almost 20% of the total NASDAQ’s value is made-up of the companies Sequoia funded.
New Enterprise Associates is the venture capital firm founded by Richard C.Kramlich, Chuck Nehwall and Frank Bonsal in 1977. With more than $13 billion in the committed capital, NEA ranks world’s largest venture capital firm and employs more than 40 investment professionals. Out of 300 startups it funded nearly 200 have gone of Initial Public Offer. They prefer to invest in the startups with the products that serve world-leading corporations and as the startup and the producct grows.
6. Benchmark Capital
It is the American based venture capital founded in 1995 and headquartered in Menlo Park, California. It is responsible for the early stage funding many successful startups such as Uber, Twitter, Snapchat, Instagram and more. Every partner has an equal ownership in the firm and compensation structure tied to employee’s tenure. With 150 successful startups under its belt with the $3 billion invested their methods are definitely working.
7. Accel partners
Accel partners is the venture and growth equity firm and funds companies inception through growth stage. It manages over assets of $8.8 billion from offices in Palo Alto, New York City, California, India, London and China. In its 20 year journey in the market, it has produced more than 300 successful startups and even acquired handful of other Venture capital companies. It was founded in 1983 by Arthur Patterson and Jim Swartz. By funding and developing the startups at seed stage, Accel manages to retain more control and profit of their portfolio companies.
8. Kleiner Perkins Caufield & Byers
KPCB is the venture capital firm headquartered on Sand Hill Road, Menlo Park and founded in 1972. Popular journals like Wall Street and others called it as one of the “largest and most established” venture capital firms and by Dealbook as ” One of Silicon Valley’s top venture capital providers”. They are specialized in investments in incubation and the early stage companies and it has backed entrepreneurs in more than 500 ventures that includes Amazzon.com, AOL, Navigenics, Compaq, Citrix, Electronic Arts, Google, Intuit and more.
9. Greylock Partners
Greylock partners is one of the world’s oldest venture capital firm founded back in 1965 by Bill Elfers and Dan Gregory. It has committed capital of more than $2 billion under its management and it focuses on early stage companies in the consumer, infrastructure and enterprise software as well as semiconductor sectors. Some successful ventures from Greylock are Pandora, LinkedIn and Instagram.
10. General Catalyst
Founded in 2000 with more than 40 employees, General Catalyst has been the major player in the Venture Capital space and they primarily focus on early stage and XIR/Growth investments. It is based in Cambridge, Massachusetts and has offices in California, Palo Alto and New York City. It has invested in various successful companies like Stripe, Snapchat, Airbnb, HubSpot, Datalogix and Warby Parker.