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Institutional Venture Partners (IVP) is a US-based venture capital firm focused on fast-growing technology companies. IVP was founded in 1980, as one of the first venture capital firms in Silicon Valley.
Venture capital (VC) is a form of private equity financing provided by firms or funds to startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in terms of number of employees, annual revenue, scale of operations, etc. Venture capital firms or funds invest in these early-stage companies in exchange for equity, or ...
Investors generally commit to venture capital funds as part of a wider diversified private-equity portfolio, but also to pursue the larger returns the strategy has the potential to offer. However, venture capital funds have produced lower returns for investors over recent years compared to other private-equity fund types, particularly buyout.
"Institutional" refers to the fact that their LPs and investors are institutions, “venture” is obvious, and “partners” speaks to the structure of IVP.
An institutional investor is an entity that pools money to purchase securities, real property, and other investment assets or originate loans.Institutional investors include commercial banks, central banks, credit unions, government-linked companies, insurers, pension funds, sovereign wealth funds, charities, hedge funds, real estate investment trusts, investment advisors, endowments, and ...
The venture capital firm usually benefits from significant access to the new company initiated by the EIR. This stems from the fact that the general partners are typically the initial investors in the EIR's new venture, providing them with an opportunity to invest before angel investors and other venture capital firms.
Seed capital can be distinguished from venture capital in that venture capital investments tend to come from institutional investors, involve significantly more money, are arm's length transactions, and involve much greater complexity in the contracts and corporate structure accompanying the investment.
This definition makes no distinction between the investors in the primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors. An investor who owns stock is a shareholder.