Commercializing technology is typically a capital-intensive process, with the exception of some software development. Entrepreneurs need to present their opportunity to people with the funds to help them make it happen: typically these are venture capitalists, angel investors and – perhaps in the initial stages – friends and family. Using Yale’s network is one way to start the personal introduction process that can help get the attention of angel and venture capital investors.
There is a broad network of investors that support ventures. The most common forms of technology startup funding are angel investing and venture capital (VC). In very early stages of startups, entrepreneurs raise funds on their own and through friends and family funds (FFF). However, technology commercialization often requires multiple rounds of funding from multiple sources. Angels and Venture Capitalists (VC’s) are private investors who take on high risk ventures with goals of high returns. Return requirements vary based on industry and stage of funding, but many investors seek 10x their initial investment over 5 years.