How to Use Venture Capital Databases
Venture Capital Database is a database of approximately 12,000 venture capital funding sources. The information is complied from internal records at over 90 venture capital and angel investors sources. This includes funders such as Sequoia Capital, Kleiner Perkins and Ray Lane. This exclusive database not only provides funding data for venture capital but also provides data on secondary private equity sources, venture bond financing, real estate investment and commercial real estate loans.
Venture Capital Database provides investors with data on all aspects of venture investment. Investors can search by industry sector or region. Companies that are missing from the main venture capital database include: Greylock and Voyeur, both of which are private equity firms. Greylock has had funding issues in recent years and has closed its investment office. Voyeur is involved in Internet related investments but no longer private equity.
Many investors are turned off by databases such as these, and would rather hear directly from a banker or private company owner about their thoughts and opinions. While this is possible, speaking to a private company owner is difficult. For a secondary record, venture capital database companies offer CB Insights Venture Capital as a service that allows investors to access the full range of financing available to small, medium and large companies. These reports provide detailed data on the financial health of individual companies, the current health of the market in terms of growth, the competitive landscape, exit prospects and trends, and the amount of money that is invested in venture capital. It will also provide an up-to-date analysis of valuations, with a focus on key metrics.
Venture Capital Database is an essential tool for investors, especially those who are new to venture capital. Many new investors are often overwhelmed by the amount of information that must be considered and digested when approaching a private funding source. However, with a great venture capital database, investors can quickly and efficiently navigate the complex maze of private funding sources and find those that best meet their investment goals.
For startups, it is especially helpful to use a venture capital database that offers a simple way to determine return on investment (ROI). There are many different ways to determine ROI, but the easiest is to simply look at the performance of a company over time. For instance, if a startup receives venture capital and is sold to another company within a year, how much of the initial investment is recouped? Using this standard in evaluating a startup’s potential for growth and success, and then comparing it to the performance of similar companies in its category can provide a great sense of direction for future funding decisions.
In addition to the standard information provided by venture capital data providers, some databases allow investors to drill down to the specific data that they are looking for. As an example, one popular VCD database allows investors to search for “semi-private” funds, which are typically specialized startup financing sources that deal in early-stage companies. Another feature that makes this type of VCD database very useful is its flexible filtering capabilities. By allowing investors to refine their search to specifically focus on the type of venture capital that they seek, these specialized sources can offer a wealth of information that enables more effective and efficient decision making.
