Venture development describes economic development activity that is focused on using best-practices and activities of experienced business mentoring and pre-angel and venture capital investing in order to help create venture and angel-capital-ready firms which have the promise to create significant economic wealth for a region, state or country including entrepreneurial wealth and jobs.
Communities that do not have recent significant history or a critical mass of current venture-backed firms are beginning to pursue venture development as a way to help their local economies begin to transform their ability to create and support such organizations.
Venture development organizations typically are organized as not-for-profit corporations. They may manage for profit or not-for-profit seed funds. Their sources of financial support are corporations, local and state governments, universities, research institutions, foundations, and individuals.
Why is Venture Development Important?
Venture-backed firms now account for a significant portion of current jobs in the U.S. economy.
As a result of these existing and on-going trends, the economy of communities that do not have a significant set of venture-backed firms will suffer on a competitive peer basis when evaluating economics such as job growth and per-capita income.