- Intel Capital
- Sequoia Capital
- Tiger Global Management
- New Enterprise Associates
- Khosla Ventures
- Andreessen Horowitz
- Index Ventures
Venture capital firms invest in early-stage and mid-stage start-ups. These firms are also known for investing in small businesses that have the potential for long-term growth. Unfortunately, not all venture capital firms are made equal, and working with the wrong firm will be bad for the company.
To help you narrow down your options, we’re going to take you through several of the best venture capital firms. Learning about these firms will leave you with the knowledge to separate the good firms from the bad, so you can get the venture capital you need.
Read on to learn more below.
The best venture capital firms have long histories and investment success. Ultimately, you want to avoid venture firms that try to take more than 50% ownership of your company and firms that don’t have investment-to-exit ratios of at least 15%.
Below are the best venture capital firms in 2022.
Intel Capital is one of the largest venture capital firms in the world. The company operates in the United States, Europe, China, and even Israel. Founded in 1991, the firm has a historically high investment-to-exit ratio of just under 30%.
Intel Capital specializes in several fields but typically funds start-ups in the technology industry. Many recent investments made by Intel Capital have been in the artificial intelligence industry, software security, and the development of 5g. Intel Capital also invests in advanced robots.
Still, what makes Intel Capital the most impressive firm is that more than 80% of the companies it invests in to make it to the IPO stage. This isn’t just a small sample size either. Intel Capital has invested in more than 1,000 tech start-ups over the last few decades.
Accel has been around for almost four decades. It was founded in the early 1980s and through its existence the company has helped more than 8 start-up companies reach the IPO stage. The company also maintains an investment-to-exit ratio of 20%, which is impressive for a firm that generates more than $700 million in revenue each year.
Accel prefers to invest in early-stage start-ups, which is why some of its numbers are lower than larger firms like Intel Capital. For example, Accel invested in several Series A rounds of funding for start-up companies in Europe and Israel.
Some of the industries that Accel invests in include tech, artificial intelligence, and robotics. The firm’s most notable investments come from investments in Facebook, Dropbox, Spotify, and Etsy.
Sequoia Capital is another large venture capitalist firm. It boasts an impressive investment-to-exit ratio of 20% and made almost $200 million in 2021. The firm invests in companies like Google, Instagram, YouTube, and PayPal.
We consider Sequoia a large venture capitalist firm because it’s made more than 1,000 investments. This makes the investment-to-exit ratio of 20% even better. Plus, the investment to exit ratio increases to over 60% when the firm serves as the leading investor. Therefore, its numbers are closer to the top firms like Intel Capital.
When it comes to stages, Sequoia focuses on the early and late stages of start-up companies. Therefore, Sequoia likes to invest during the seed rounds of funding and the Series A and Series B rounds of funding. Sequoia was founded in 1972 and operates across the world from the United States all the way to Japan.
20 years ago, Tiger Global Management was born. The firm has locations in some of the largest cities in the world like New York, Hong Kong, Singapore, and Beijing. While the company experienced slow growth at first, Tiger Global Management is worth upwards of $50 billion today.
While Tiger Global Management is a large firm, it takes more risks than some of the other venture capital firms. For example, Tiger likes to invest in a more diverse portfolio. Some of the company’s holdings include Coinbase, Instacart, and Credit Karma. Ultimately, the firm likes to spread its wealth around.
For a large and young firm, Tiger Global Management also boasts an impressive history of success. The company maintains a 20% investment-to-exit ratio, which keeps it among the leading companies in the industry. Additionally, Tiger generates profits upwards of $100 to $200 million per year.
New Enterprise Associates has been around for four decades. Its headquarters are on the East Coast and the firm invests in various tech companies. Some notable investments include Uber, Buzzfeed, Duolingo, and 23andMe. These investments made the firm billions in profit, which is why the firm consistently generates more than $200 million per year in revenue.
That said, New Enterprise Associates is also a massive firm. In fact, it was the biggest venture capital firm in 2007 and held that title for several years. New Enterprise Associates also makes investments in the healthcare industry to develop innovation in medical science.
The firm maintains an investment to exit ratio of 20% but when the firm is the lead investor the ratio is closer to 50%. Overall, New Enterprise Associates is one of the best venture capital firms in the world.
Khosla Ventures was founded by Keith Rabois in 2004. Rabois is an angel investor with a lot of experience in the tech industry. His firm, Khosla Ventures, consistently ranks among the best venture capital firms.
While Khosla Ventures is one of the smaller venture capital firms, it generates an impressive amount of revenue. For example, the firm manages more than $5 billion in assets. Compared to larger firms, this is not that small of a number.
In total, Khosla Ventures has invested in more than 700 companies. For a small firm that was founded less than 20 years ago, that’s an impressive feat. However, the more impressive feat is the investment-to-exit ratio of 13%. Khosla Ventures is known for investing in technology and food companies like DoorDash.
Andreessen Horowitz (AH) was founded by Marc Andreessen and Ben Horowitz. It was founded in 2009 and invests in dozens of start-up companies each year. The main focus of AH is to invest in companies that exist within the tech space.
Some examples of companies that AH invests in include Facebook, Stripe, and Twitter. In fact, AH’s largest investment of $80 million was invested in Twitter. So, while it’s one of the smaller firms, the company invests a lot of capital into the right companies.
Over its 11-year history, AH has an impressive record. The company has an investment-to-exit ratio of 17%, which is rare for a new firm. AH also has an impressive amount of revenue and will likely come close to $100 million in 2022 and 2023.
Index Ventures is primarily a European company. However, it expanded to the United States and now had headquarters in New York and London. Index Ventures was founded in 1996 and since its inception, the company maintains an investment-to-exit ratio of 20%. Compared to other young venture capital firms, that’s an impressive ratio.
Index Ventures prefers to invest in tech companies. Examples include the gaming industry, e-commerce, security, and even fintech. Lastly, Index Ventures has also become interested in crypto ventures and exchanges like Coinbase.
In total, Index Ventures has invested in more than 200 companies and that number will continue to grow. The firm also reaches great profits upwards of $50 million per year. For start-ups expanding into overseas markets, it’s hard to beat Index Ventures.
Connecting with investors is challenging for a few reasons. First, you need to make sure who you’re investing with is credible. Second, you need to ensure that the firm is asking for a reasonable stake in your company. And finally, you need to make sure the firm has a history of investment success.
Fortunately, AngelMatch is here to help with a database full of thousands of venture capitalists. When you work with AngelMatch, we build you a network of angel investors and venture capitalists that takes years to organize on your own.
So, don’t let anything else slow you down, and connect with investors today.