Venture capital (VC) firms are investment firms that invest in industry-changing startups and entrepreneurs from early to growth stage that are poised for long-term, substantial growth. Wildly successful startups from Facebook to Slack have received startup funding in the form of venture capital, which provided them with the financial backing to reach new heights.
If you think your startup is ready for venture capital, the next step is to decide on the right VC firm to financially back your industry-changing idea. We are here to help you decide with this guide to the top venture capital firms for startups.
Top VC Firms
Ready to launch your startup with the help of a venture capital firm? We’re here to help you wade through the options with this list to the best venture capital firms for startups and who they are right for.
Disclaimer: With so many venture capital firms around the world, we aren’t able to cover them all. Furthermore, the following VC firms are not officially ranked and are listed in no particular order.
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You can also browse our full collection of VC firms by industry and location.
1. Sequoia Capital
- Location: Menlo Park, California
- Assets Under Management: $85 Billion
- Invests In: AI Startups, Enterprise Startups, Healthcare Startups, Fintech Startups
Sequoia is one of the most popular, well-known venture capital firms available to tech startups. Understandably so, the firm has been providing funding for startups since 1972 and boasts tech giants such as Google, Apple, and Oracle as just a few of the firm’s wildly successful alumni.
2. Andreessen Horowitz (a16z)
- Location: Menlo Park, California
- Assets Under Management: $43 Billion
- Invests In: Fintech Startups, Crypto Startups, AI Startups, Consumer Startups
Based in Silicon Valley, Andreessen Horowitz, also known as a16z, is a venture capital firm dedicated to funding seed to late-stage startups that are innovating modern life (and the future) with the power of technology.
3. Accel
- Location: Palo Alto, California
- Assets Under Management: $9.6 Billion
- Invests In: Cloud Startups, AI Startups, Enterprise IT Startups, Hardware Startups
Accel is one of the top venture capital firms that funds startups across all stages, from seed to growth stage. Some of Accel’s most notable investments include Facebook, Dropbox, and Slack.
4. Kleiner Perkins
- Location: Menlo Park, California
- Assets Under Management: $9.2 Billion
- Invests In: Hardtech Startups, Healthcare Startups, Consumer Startups, Fintech Startups
Behind some of the most notable companies today is Kleiner Perkins. The venture capital firm boasts a portfolio featuring Amazon, Spotify, and DocuSign, to name only a handful, and their mission is to provide funding for startups and entrepreneurs that will make history.
Check out our article on John Doerr, chairman of Kleiner Perkins!
5. Bessemer Venture Partners
- Location: Redwood City, California
- Assets Under Management: $18 Billion
- Invests In: AI Startups, ML Startups, Biotech Startups, Deep Tech Startups, Cloud Startups
As one of the oldest venture capital firms, Bessemer Venture Partners has been investing in innovative technology companies such as Pinterest, Shopify, and LinkedIn for 50 years. With close to $20 billion in assets under management today, the mission of this firm is to financially back startup entrepreneurs that will create lasting change and inform the future.
6. New Enterprise Associates (NEA)
- Location: Menlo Park, California
- Assets Under Management: $25 Billion
- Invests In: Fintech Startups, Enterprise Startups, Consumer Startups, Digital Health Startups
NEA is a global venture capital firm on a mission to better the world through strategic startup investments. With $25 billion in assets under management, NEA is dedicated to funding early-stage companies that are poised to disrupt major, high-growth industries such as Robinhood and Plaid.
7. Khosla Ventures
- Location: Menlo Park, California
- Assets Under Management: $25 Billion
- Invests In: Fintech Startups, Sustainable Startups, Digital Health Startups, Therapeutics Startups
Khosla Ventures is a unique venture capital firm that prioritizes team-focused startups with disruptive products or ideas that will dramatically change an industry. With a seed fund and main fund, there are multiple avenues for startups to find funding through this firm. Some of the firm’s most notable investments include Affirm, DoorDash, and Everlane.
8. Benchmark
- Location: San Francisco, California
- Assets Under Management: $9.1 Billion
- Invests In: Enterprise Software Startups, Infrastructure Startups, Mobility Startups
Founded in 1995, Benchmark has been investing in industry-shifting startups for nearly 30 years, focusing specifically on early-stage startups with opportunities for high growth. Some of the firm’s most notable investments include Tinder, Uber, and Snapchat, with a reported $9.1 billion in total assets.
9. Canaan Partners
- Location: San Francisco, California
- Assets Under Management: $7 Billion
- Invests In: Medtech Startups, Biopharma Startups, Consumer Startups, Fintech Startups
For over 30 years, Canaan Partners has been providing venture capital investments for early stage startups in the technology and healthcare industries across a variety of sectors. The firm boasts more than 70 initial public offerings (IPOs) and 152 mergers and acquisitions (M&As) since its inception in 1987.
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- Location: New York, New York
- Assets Under Management: $2.5 Billion
- Invests In: Enterprise Startups, Media Startups, AI Startups, Healthcare Startups
RRE Ventures is a New York-based venture capital firm that has invested in more than 400 companies across 10 funds since the firm’s inception in 1994, boasting more than 125 exits. With one of their most notable investments being popular financial services app Venmo, the firm not only invests in powerful, innovative startups — they also provide invaluable resources for entrepreneurs.
11. TCV
- Location: Menlo Park, California
- Assets Under Management: $21 Billion
- Invests In: Consumer Startups, Social Media Startups, Media Startups, Fintech Startups
Since 1995, TCV has backed industry-leading startups such as NuBank and iPipeline. The firm focuses on funding powerhouse tech startups that are both public and private, boasting 74 strategic exits. In addition to substantial investment opportunities, TCV also includes strategic mentorship and resources for CEOs and startup founders.
12. Founders Fund
- Location: San Francisco, California
- Assets Under Management: $12 Billion
- Invests In: Space Startups, Social Media Startups, Fintech Startups, Software Startups, AI Startups
Founders Fund, a venture capital firm headquartered in San Francisco, is one of the most well-known VCs in the world. Founded in 2005, the firm invests in a broad array of industries, backing startups in sectors that range from aerospace to mobile payment solutions. Founders Fund was launched in part by Peter Thiel, who’s known for cofounding PayPal and being an early investor in Facebook.
13. Index Ventures
- Location: San Francisco, California
- Assets Under Management: $15 Billion
- Invests In: Beauty Startups, Fintech Startups, SaaS Startups, Logistics Startups
Index Ventures is a venture capital firm located in San Francisco, New York, London, Geneva, and Jersey. The firm has been around since 1996 and has invested in some of the world’s most popular companies including Deliveroo, Etsy, and Slack.
The company started as a Swiss bond trading company, but, when the founder got his son involved, they immediately launched a separate technology arm of the company: Index Ventures.
14. Insight Partners
- Location: New York, New York
- Assets Under Management: $80 Billion
- Invests In: Software Startups, AI Startups, Legal Tech Startups, Web3 Startups
Insight Partners is a massive venture capital firm that primarily invests in high-growth software scaleups. The firm provides portfolio companies with access to expansive networks, in-house expert guidance, and learning programs for founder skill-building. Since the company’s inception, Insight Partners has invested in more than 800 companies and boasts IPOs for more than 55 portfolio companies.
15. Menlo Ventures
- Location: Menlo Park, California
- Assets Under Management: $6 Billion
- Invests In: AI Startups, Biotech Startups, Cloud Infrastructure Startups, Cybersecurity Startups
Menlo Ventures is known for being one of the oldest venture firms in Silicon Valley, as they were founded in 1976. The firm has invested in some of the most well-known companies in the world, like Uber, Rover.com, and Siri. They focus on consumer and enterprise companies with a recent interest in healthtech and robotics.
In total, the company has made investments in over 400 companies, 80+ of which have already gone public, and another 165+ have gone through mergers or acquisitions.
16. Greylock Partners
- Location: San Francisco, California
- Assets Under Management: $3.5 Billion
- Invests In: AI Startups, Cybersecurity Startups, SaaS Startups, Marketplace Startups
Founded in 1965, Greylock, along with a few others on this list, is one of the oldest running venture firms. The firm focuses primarily on early stage startups with an artificial intelligence (AI)-first approach. A few notable investments include Airbnb, Facebook, and Figma. Greylock also offers a three-month company-building program called Greylock Edge to support pre-idea, pre-seed, and seed founders as they advance their startups.
17. Lightspeed Venture Partners
- Location: Menlo Park, California
- Assets Under Management: $18 Billion
- Invests In: AI Startups, Gaming Startups, Blockchain Startups, Consumer Startups
Lightspeed is a large firm based out of California that is no stranger to any stage of the investment process. They also have a large range of the type of startups they invest in, from seed to growth. Their portfolio showcases big names like Snap, Lady Gaga’s Hause Laboratories, and Rubrik.
18. Tiger Global Management
- Location: New York, New York
- Assets Under Management: $58.5 Billion
- Invests In: Robotics Startups, Fintech Startups, Software Startups, AI Startups
Tiger Global Management is an American investment firm that focuses on venture funding, public equity, and credit investments in the global Internet, software, consumer, and financial technology industries. Founded in 2001 by Chase Coleman III, the New York-based firm has backed numerous successful startups like Facebook, LinkedIn, Flipkart, and Stripe as well as more than 90 portfolio company IPOs.
19. Battery Ventures
- Location: Boston, Massachusetts
- Assets Under Management: $3.8 Billion
- Invests In: Application Software Startups, Infrastructure Software Startups, Consumer Startups, Life Science Startups
Battery Ventures is a global investment firm that focuses on investing in cutting-edge technology and innovation companies across various stages — from seed and early stage ventures to later-stage growth companies. Founded in 1983 and headquartered in Boston, with additional offices in San Francisco, Menlo Park, New York City, London, and Tel Aviv, Battery Ventures has raised more than $3.8 billion in committed capital and has invested in more than 500 companies globally.
20. SoftBank Vision Fund
- Location: London, England
- Assets Under Management: $166 Billion
- Invests In: Edtech Startups, Consumer Startups, Fintech Startups, Enterprise Startups, Frontier Tech Startups
SoftBank Vision Fund is a venture capital fund established in 2017 by SoftBank Group, a Japanese multinational conglomerate. With more than $100 billion in capital, it is one of the largest technology-focused investment funds in the world. The fund aims to support innovative entrepreneurs and companies driving the next stage of the information revolution with a focus on fostering long-term value creation and technological advancement on a global scale.
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What is venture capital?
Venture capital is a type of private equity financing where VC firms invest in emerging companies with high growth potential. VC funding is crucial for new companies that are often unable to access traditional financing methods like bank loans. A venture capitalist provide not just financial backing but also contributes significantly to business development through their industry expertise and networks.
These emerging companies, especially in fields like technology and healthcare, rely on capital invested to fuel their growth and innovation. This investment plays a vital role in the global economy, fostering new advancements and job creation. Venture capitalists focus on these promising startups, providing capital in exchange for equity, and helping drive economic growth and innovation.
How does venture capital work?
The venture capital industry provides financing to startup companies and small businesses that are deemed to have high growth potential.
Securing VC funding involves several key steps, beginning with crafting a compelling pitch that highlights the startup’s value proposition, market potential, business plan, and team expertise. Once a VC firm shows interest, the startup undergoes due diligence, a detailed review process where the firm assesses the startup’s financials, market viability, and growth potential.
Successful navigation through the due diligence stage leads to discussions about valuation and investment terms. The VC firm’s “investment committee” then evaluates the startup. This committee, typically consisting of senior partners and analysts, makes the final decision on funding.
If the committee approves, the VC firm and the startup company finalize an agreement. This involves negotiations about equity, board representation, and other investment terms. Once agreed upon, the funding is provided, usually in stages based on reaching specific milestones. This process demands thorough preparation, clarity in communication, and an understanding of the VC firm’s interests.
What is a tier 1 venture capital firm?
A tier 1 VC firm is renowned in the industry for its track record of investing in and nurturing successful companies. The reputation of these firms hinges on their ability to identify promising startups early and provide substantial value beyond capital, through strategic support and networking.
Overall, being part of a tier 1 firm’s portfolio is highly coveted by emerging companies, as it signals credibility, potential for growth, and access to a wealth of resources and industry connections.
What are some popular industries VCs invest in?
Venture capitalists actively invest in various high-growth industries. Consumer technology companies attract significant interest due to its widespread market appeal and integration into daily life. The life sciences sector, including biotechnology and healthcare innovations, is another key area, offering potential for transformative health solutions and requiring substantial R&D investment.
E-commerce remains a popular choice for VCs, driven by the scalability and global reach of online retail platforms and marketplaces. Similarly, enterprise software, with its range of business solutions like CRM and cybersecurity, is favored for its potential for steady revenue and the increasing digitalization of businesses.
Additionally, VCs are also investing in emerging sectors like clean technology, which focuses on renewable energy and sustainability solutions, and artificial intelligence, which is reshaping various industries with innovative applications. These diverse areas, with their mix of innovation and market potential, make them attractive for venture capital investments.
