Financing Your Dream ◾ 127
technology industries, for example, biotechnology, IT, or software. The typi-
cal VC investment occurs after the seed-funding round, frequently referred
to as growth funding round (or Series A round). The VC seeks to generate
returns through an eventual realization event, such as an IPO or a trade sale
of the company.
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VC is a subset of private equity.
One of the rst steps toward a professionally managed VC industry was
the passage of the Small Business Investment Act of 1958; this Act ofcially
permitted the U.S. Small Business Administration (SBA) to license private
“Small Business Investment Companies” (SBICs) to help nance and manage
small entrepreneurial businesses in the U.S.
Before World War II, money orders ...