Venture capital spurs growth at the critical early stages of growing companies' development.
Moreover, venture capitalists don't just throw their money at startup companies hoping to get lucky and pick a winner. They become involved as board members and management advisors, suggesting strategic partnerships, and helping to refine business plans. In 1997, it was disbursed to some 2,485 companies, five times more than in 1980. But as venture capital investments have increased, even middle-ranking states obtain significant amounts of venture capital.