FACT
SHEET
The
National Venture Capital Association (NVCA) seeks to foster
greater understanding of the importance of venture capital
to the U.S. economy, and support entrepreneurial activity
and innovation. The NVCA represents the public policy interests
of the venture capital community, strives to maintain high
professional standards, provides reliable industry data,
sponsors professional development, and facilitates interaction
among its members.
Venture
capitalists play a critical role in the U.S. and global
economies by supplying the risk equity capital and management
expertise needed to build strong management teams and successful
entrepreneurial companies. Venture-backed companies are
leaders in job creation, innovation and international competitiveness.
Companies such as Federal Express, Intel, Sun Microsystems
and Genentech are all examples of successful companies who
were once venture-backed.
Venture
capital activity impacts the U.S. economy by:
- Creating
and developing innovative companies and new industries.
-
Improving the standard of living through the acceleration
of new technology, processes, products and services.
- Generation
of significant tax revenues and international exports
Venture
capitalists are long-term investors. The initial round of
financing is only the beginning of a long relationship between
the venture capitalist and the entrepreneur. Venture capitalists
take a hands-on role with their portfolio companies. They
help to build strong management teams, manage rapid growth,
and form strategic relationships. Venture capitalists are
experts in building fast growing companies and often have
specific industry expertise.
Membership
in the NVCA is open by invitation to all venture capital
and private equity organizations located in the United States
who are responsible for investing risk equity capital to
young companies on a professional basis. More about NVCA
can be found at www.nvca.org.
