However, you might wonder how VCs acquire their own funding and raise capital. It's important to know because, as a business owner, it's always wise to understand the entire funding process from the very start.
Business News Daily spoke with several VCs and other experts to find out more about financing before you even sit down to discuss your business idea. Here are the top ways VCs provide funding so they can help you realize your business dreams.
A network of funds
Cohen mentioned friends as one possible investment source for venture capital firms. As a small business, you might be seeking funds from one VC who meets with you, but that person might represent dozens of friends and colleagues who are ready to help lift your company to new heights.