Venture capital supports entrepreneurial talent and appetite by turning ideas and basic science into successful products and services. Venture capital is an important source of funding for start-ups, since they have a limited operating history, and hence don’t have access to the capital markets. It helps reduce the time required to bring a product to market.
Over the years, venture capital has gained widespread recognition in the United States, especially in rapidly expanding industries like software, telecommunications, semiconductors, medical devices, biotechnology and life sciences. Some of the most innovative and successful companies such as Amgen, Apple Computers, Cisco Systems, Compaq, eBay, Federal Express, Genentech, Genzyme, Gilead Sciences, Intel, Microsoft, Netscape, Sun Microsystems, Staples and Yahoo received venture financing.