When a business starts up, usually the largest challenged that the founders will face is securing funding to keep it going long enough to get it off to a great start financially. Effi Enterprises is a venture capital firm which helps supply entrepreneurs and emerging businesses with the funds needed to reach the next level of growth. A venture capitalist invests into an emerging company by purchasing part of the company. This is a relatively short term investment in a company with the expectation that the company will grow enough to bring in a sizeable return. Efraim Landa, who is an entrepreneur himself, invests venture capital into a start up business expecting that the company will experience this growth inside 10 years. There are many different businesses that use funding provided by a venture capital firm to help them reach a great level of success.
Between 2006 and 20011 over 6500 US based companies were funded by venture capital. About 84% of these are now operating nearly independently while 11% of them either made an IPO or were acquired. Only about 4% went out of business. About 1% are in IPO registration. Of all the companies which are funded by a venture capital firm roughly 60% survive from start-up to age 3 and about 35% survive to the 10 year mark. That is generally the goal when a venture capital firm provides funding. Here are this year’s top ten successful companies that got their start from VC funding.
Top 3 VC Backed Successful Businesses
Each year, the Wall Street Journal publishes a list of the top 50 companies that are backed by a venture capital firm. Until recently, most of the businesses on the list were focused on providing for online consumers. The three companies that ranked in the top three slots include Genband Inc., Xirrus Inc., and Tabula Inc. Genband Inc. supplies voice over internet protocol (VoIP) technology to companies which deal with telecommunication technologies. Xirrus Inc. provides equipment for wireless networking and Tabula Inc. manufactures semiconductors for various electronic products.
Rest of the Top 10 Successful Businesses Backed by Venture Capital
Slot number 4 of the top 10 successful businesses backed by venture capital is filled by Prosper Marketplace Inc. They specialize in business and financial service and over the last year they have made nearly 20,000 loans which total more than $130,000 million. SpiderCloud Wireless Inc. provides indoor mobile broadband services for businesses. They are in the number 5 slot of profitable businesses which were funded by VC.
DocuSign Inc. is in the business and financial sector and helps companies reduce their use of paper documents as well as decreasing the time that it takes to complete contracts. They provide web-based services for signing and delivering documents. The two successful businesses in slots 7 and 8 are both in the health care sector. Glaukos Corp designed the first major device that has been used to treat glaucoma since the early 70s. They provide medical technology and therapies which work to reduce glaucoma in patients. And NeuroPace Inc. has designed devices which are used to treat a variety of neurological disorders. NeuroPace Inc has also filed for approval of a system which can be used to monitor and stop epileptic seizures.
The number 9 profitable business backed by venture capital funding is 10gen Inc. It is an information technology company that works with NoSQL databases. Glam Media Inc. provides consumer services and operates a series of 3400 lifestyle community sites. According to the most recent statistics, Glam Media Inc. has been attracting nearly 240 million unique visitors per month.