venture capital

5 Companies That Benefited from Venture Capital Funding

Image Credit: Euro Betting Tips on Flickr

Venture capital investing is one way of several ways to fund a business startup or capitalize for growth. Many successful companies today have taken advantage of this type of financing in the beginning.

Other types of capitalization include angel investors, who are rich entrepreneurs who see the new business’s vision and give money toward it. Bootstrapping is when the business owner uses his or her own cash to grow an entity. Crowdfunding is a collection of strangers who donate money to open a new business. Additionally, many startup owners rely on a government entity such as the US Small Business Administration, or SBA. Or they borrow from family and friends.




Venture Capital Defined

Investopedia defines venture capital as “…financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.”

The operative phrase in this definition is “long-term growth potential.” A mom-and-pop shop, in other words, isn’t going to find a venture capitalist willing to invest in their business. Rather, these are investment companies that make it their business to grow entities and grow them big. Therefore, the business owner must show the company has the goods become the next Amazon. And that isn’t easy to demonstrate.



1. Amazon

Speaking of Amazon, Jeff Bezos took advantage of venture capital investments in his company early on. That funding helped him turn his company into the retail leader it is today.

These days, nobody can compete with Amazon. That’s true even though online shopping is the only way to shop in 2018. The more brick-and-mortar stores that close their doors, the more people shake their fist at Amazon. Yet, when they’re done directing their admonishment toward the company, they log into their account and place their Prime order. Then they anxiously await its two-day delivery once they click the “Place Your Order” button.


2. Google

Another company that leaves everyone in the dust is Google. Google, too, took advantage of venture capital funding in the early stages of its development.

Today, Google owns pretty much everything. Everyone searches on Google for whatever question they have. They use its Chrome web browser on their handheld devices to look for products and services they need.

Google is also making a splash in the technology industry with its Chromebook computers. Additionally, small businesses rely on Google+ reviews to help build their customer base. What’s more, if your site cannot make onto the first two pages of Google search results, you’re toast. All this mastery derives from the early venture capital funding that financed Google’s vision.


3. Instagram

One venture capital investor saw Instagram’s vision and it paid off for him in spades. Chris Sacca opened the venture capital company Lowercase Capital in 2010. Since then, he has invested in Instagram as well as Twitter and Uber, among other successful companies.

Venture capitalists look at a company’s vision. Once they have invested, they help with guidance and management. In fact, it’s safe to say that Sacca likely sat the company CEO down and said something like, “This is how you’re going to get from Point A to Point B.”

The formula worked for Instagram. Few can get through the day without taking a selfie and posting it on their Instagram wall.


4. Starbucks

Coffee giant Starbucks is another retail business that benefited from venture capital. That’s despite the fact that venture capital investing tends to lean more toward the technology sector.

Nonetheless, day in and day out, new Starbucks stores and kiosks sprout up throughout the world. Doubtlessly, meanwhile, their drinks fuel the technology sector, among others.

The Starbucks faithful order their coffee online and then head to their closest store. There, they pick up their favorite beverage, already made and waiting.

Starbucks’s coffee is grown and harvested sustainably. In other words, the company helps coffee farmers throughout the world. This is one of the things which makes all of its investors and customers happy, despite detractors who complain that Starbucks’s coffee is overpriced and too strong. It’s no wonder venture capitalists loved its business model from the beginning.


5. Uber

Finally, although Uber has received some bad press in recent years, it continues to grow by leaps and bounds. In 2017, the company hired a new CEO to enact some much-needed damage control. Many feel the company made the right move when they did so.

After the board got rid of Travis Kalanick, it brought in Dara Khosrowshahi, the man responsible for helping travel website Expedia out of its drought. Khosrowshahi has been working steadily to build Uber back to what it had been. Thereafter, he hopes to grow it beyond that benchmark successfully. In the meantime, the company is using venture capital investing to help.

Now, the company has an ingenious new advertising campaign geared at recruiting drivers as well as customers.



Venture capital investing helps businesses in all sectors take their venture to the next level. Accordingly, those who invest their capital into businesses offer a hands-on approach. This ensures that growth meets and exceeds expectations. That’s because venture capital investors are experts in the niches in which they choose invest. Therefore, they have the know-how to take a company to Amazon or Google status.

Financial experts predict venture capital investing to continue to make a huge splash in 2018 and beyond.