Start a Venture Capital Company

Are you the type of investor who is attracted to high-risk, high-return investments? Do you have the financial resources to help new and fast growing companies with their funding and management needs? Then, venture investing might be for you. Find out from our guide the basics of how this type of investing works.

If you have the money to invest and has the appetite for high-risk, high-return investments, you might consider investing in new, rapidly growing companies that have potential to bring you large returns.

People and companies that do this are called venture capitalists. They help small and fledgling companies take off by providing them capital as well as technical and administrative inputs, usually, at their startup stage.

How Does Venture Capital Investing Work

How do you become a venture capitalist? If you are an individual, you can act alone and become an "angel investor" providing low-level financing and management expertise or you can partner with another investor or become part of a group of people and institutions funding a corporation.

  • If you are pursuing the plan with a partner or a group, you basically start a firm first, which is usually structured as a partnership or a corporation
  • The venture firm, as your group will be called, will form a pool of funds by seeking capital commitments from other investors and institutions to raise a pre-determined amount of money. This happens with the firm seeking out prospective investors and sending them prospectus about the capital raising. Out of the capital commitments solicited, a fund will be created, which will become the legal entity transacting business in behalf of the investors. The process could take weeks to years. The fund is usually structured as an LP or an LLC, which has a fixed lifespan, usually up to 10 years.
  • The venture firm will have to decide whether it wants to invest the fund in a particular industry or area or invest across industries, in various locations and in companies at different stages of development. The venture firm might also choose to concentrate on acquisitions or helping failing companies get back to financial health (turnarounds).
  • The venture firm considers various investment opportunities presented to it. The firm then conducts due diligence to choose an investee company (usually among many, which could be a hundred). Typically, the firm will be given shares in the investee company and members of the venture firm become managers or directors of the company. The capital commitments will be during several stages of the company’s development.
  • The firm may decide to do another round of rounds of fund raising for other investments.
  • Venture firms anticipate investments to generate returns in three to five or seven years. Usually expected return on investment is 20-40%. The maturity of the investment is heralded favourably by an initial public offering of the company or a sale or merger, which shows it has gained enough footing to be able to attract investor interest.

As a venture capitalist, you help many companies get through their startup stage, while helping create jobs and fuelling the economic growth of the country.

For resources, see the National Venture Capital Association


  • andrew edawrds said on November 13, 2009
  • Akash Sureka said on November 27, 2009
    Would like to start a VC/PE company in India. Do you have sample free business plans with all market research which can be shared with me? Akash
  • Connie said on December 9, 2009
    I would like to start a Venture capital in Massachusetts, USA. Can i get some more details?
  • James Parivash said on February 26, 2010
    i am interested in venture capital firm, how would i start one in San Jose California, USA
  • JAMes U said on April 2, 2010
  • Brent said on April 13, 2010
    Hello I'm in Irvine, CA and I'm looking to raise money for one of my projects or looking to learn more on how to start my own venture capital. If anyone can help please email me. I've raised $700k already just needing another $300k to finish project
  • Dare Talabi said on April 14, 2010
    I live in Lagos Nigeria and I am really passionate about starting a venture capital firm to assist African countries as well a other nations that really need to develop entrepreneurship to develop their economies. Please do you have sample free business plans with all market research which can be shared with me. Thank you
  • Michael Hammond said on May 27, 2010
    I live North Carolina the research triangle I would love to start venture capital company to service tweens. I have a friend who has a substantial amount of funding interested in a funding structure like this. Please help and assist me with a draft proposal or sample business plan.
  • Amit Bhatia said on July 2, 2010
    I am based at New Delhi, India & would like to start a VC/PE Firm in India. Can you please send in more details about the same. Rgds, Amit
  • Ato B said on July 7, 2010
    I'm currently attending school in NY, but would like to start a VC firm in my native country, Ghana. Could you please help with some guidelines. Thanks
  • Dan Scarlett said on September 28, 2010
    I'm interested in starting a venture capitalist firm to assist in funding movie projects. Any suggestions would be most helpful. Thank you, Dan Scarlett
  • John Oertle said on December 23, 2010
    what are filing requirements for federal and state for start up of a venture capital company. I live in Utah
  • Atul Mishra said on January 14, 2011
    Hi, your stuff is really very informative, I am CFA and working with one of largest mutual fund houses of USA based at New Delhi in India ,would like start an Angel ,Venture and PE firm .Kindly send me details for the same .
  • kamal Labinjo said on January 26, 2011
    Good info but please send me more details on the program. I am located in Toronto, Canada Thanks.
  • Agraad Pvt Ltd said on March 2, 2011
    Dear Sir/Ma'am, We are a team of engineering students who try and make progress in the field of Automobiles. We have about 3 patents in different areas of the same field. We intend to start manufacturing motorcycles with 1000 cc engines from scratch in India for the ever growing motorcycle enthusiasts in and around. India. We come upon a fine crowd like yours who could help us in kick-starting this business idea and establishing a strong market hold. We believe in our project very dearly and our market research confirms our believes. We Would love venture capitalists like you to invest in us and our product. Kindly look into our proposals are we are keen on taking our talks to the next level. Thank you, Sincerely, Varun Menon
  • Parmita Singh said on March 22, 2011
    Hi, I am based in New Delhi, India and would like to start a PE/VC firm. Is there a mandatory requirement for minimum corpus? Could you please give me more information on this?
  • Bobbi Johson said on March 28, 2011
    I'm in Virginia and would like to start a venture capital firm in the inner city to help revitalize the economic growth in buying condemned real estate and building environmentally friendly housing.
  • Thiva Paramsothy said on May 21, 2011
    i'm interested in starting a VC in Toronto, ON, Canada. Could please guide me in the direction.
  • Matthew said on August 13, 2011
    Hi, i and my friend owns a property in Mumbai's prime area, we like to start a star hotel in that property we own, we started a company for the same, we need equity investors for the project,pls write to me soon, , Cheers Matthew.
  • Munaf Ali said on September 2, 2011
    Hi , i'm interested in starting a VC in Gujrat , India. Can u please provide me more information on this ? Thanks .. Munaf.
  • Kamal said on October 6, 2011
    I am based in Accra, Ghana and Lagos Nigeria. I need more information to start a venture capital companies for the african market.
  • issahaku salfu said on November 25, 2011
    I am based in tinguri in the northern region of Ghana and I want a venture Capitalist partnership to help grow my cattle farm get in touch if you are a business angel around the globe.
  • Victor said on May 12, 2012
    I am interested in starting a venture capital business in Indianapolis, IN. I have 5 partners and we have pooled $500K. What are the steps to get the company off the ground?
  • M.Sebely said on July 12, 2012
    I would like to know all the governmental processes that a non resident should take to set up a venture capital firm in Virginia.
  • A. Stricklin said on July 13, 2012
    I'm interested in initiating a VC Group to float and manage restaurants (green and sustainable development) also attract exceptional employees who are interested in potential training/investment/& future growth!!!
  • r.kumars said on July 15, 2012
    To Whom It May Concern_: Sir, we wish to install 1000 mw solar energy power plant in India we seek to financial sound equity partner for the project if some one take interest in our company we welcome them and decide terms and conditions as per Indian Company law.
  • Amruta Shah said on August 14, 2012
    Please provide me some details as I am working in Pvt. Ltd. Co. & it want to start venture capital firm the questions are as under:
    1) procedure to start a venture capital firm?
    2) what is the documentation require for the venture capital firm?
    3) How to pay Or Compensation system in venture capital Firm??
  • juma. said on November 26, 2012
    i'm currently raising money to boost my project entailed to create employment through talent search among youths in my country. how do one benefit from capital firm? how much is the starting capital
  • christiana d said on January 15, 2013
    hi i am from nigeria i will like to know how can a fish business be a venture
  • Jana said on March 17, 2013
    Please provide me with details about how to open a venture capital agency :
    a. from where i can finance my project or in what means ?
    b. what are the legal documentation require for the venture capital firm?
  • Mine said on April 6, 2013
    I have been working in energy conservation, and had managed few projects with geothermal and solar panels. I would like to start solar business in Dallas. Would you please provide me information of where I am going to start? Thanks
  • David Francen said on July 7, 2013
    We are a successful Real Estate developer, General Contractor and property manager based in Minneapolis, MN. We have expanded our business to the booming Real Estate market in North Dakota. The financial institutions we use in Minnesota are not setup, or willing to setup lending in North Dakota. We have secured properties in excess of 2,000,000 and are looking to setup our own venture capital group. The profits anticipated are 18-40% annual returns. Let me know if you can assist our company with our ventures. Thanks much Tree Top Funding, LLC (future co), David Francen, 612-716-4277,
  • Vinay Lavatre said on October 23, 2013
    Please provide me the detail to start venture capital firm
  • Joseph said on January 18, 2015
    Hi, Please provide me with the detail to start venture capital firm. In particular, what documents do I require to present to would-be investors for fundraising? What processes there are for the formation of venture capital firm?


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