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What Is Venture Capital Funding? Everything You Need to Know

There comes a point in every entrepreneur’s journey where securing financial backing is often the difference between a business’s success or failure. Among the myriad funding options available in the marketplace, venture capital (VC) stands out as a significant catalyst for innovation and growth. Yet, behind the allure of securing VC funding lies a whole host of intricacies and nuances that entrepreneurs must navigate to unlock their potential.

VC funding, popularized by reality TV shows like Shark Tank, is often characterized by monetary investment in early-stage, high-potential startups who are perceived to be industry disruptors. However, the journey from ideation to funding is a long one with lots of challenges. Understanding the ecosystem, its players and its dynamics is key for success—both for VCs and for businesses seeking funding.

Most companies go through different types of funding throughout their life cycle. The initial round, known as seed funding, involves raising capital to initiate the development of a business idea or a product. It can be self-funded or come from family, friends or even angel investors (people with a high net worth looking to invest in startups). After seed funding, some companies procure additional funds via Series A, B and C with VCs interested in injecting cash in exchange for equity (stocks) or partial ownership.

Liza Rodewald and Erica McMannes met in 2014 as freshly uprooted Army spouses. In 2016, they co-founded Instant Teams, a remote team development company that provides flexible work opportunities for military families. They received seed funding in 2018 and 2020 and then subsequently raised Series A in 2022.

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