Venture capital financing (also known as venture capital funding or VC funding) is a form of financing for new or early-stage companies with high growth potential. Venture capital financing is offered by venture capital firms, which are professional investment firms that receive investment money from state pension funds, university endowment funds, and wealthy individuals. Venture capital firms seek multiple returns on their initial investment in a startup company. When evaluating companies to invest in, venture capital firms consider many factors, including (1) the strength of the management team; (2) the size of the market the company is in (total addressable market or TAM); (3) whether the company has proven there is demand in the market for its product or service (product-market fit); and (4) how easy or difficult it will be for other companies to compete with the company seeking venture capital financing.

In Alaska, venture capital financing is not governed by specific state statutes that apply exclusively to venture capital activities. Instead, venture capital firms and their investments are subject to general state laws regarding securities, business entities, and contracts, as well as federal securities laws and regulations. These laws include the Alaska Securities Act, which governs the offer and sale of securities within the state, and the Alaska Corporations Code, which outlines the legal framework for the formation and operation of corporations and other business entities. Additionally, federal laws such as the Securities Act of 1933 and the Securities Exchange Act of 1934, along with regulations from the Securities and Exchange Commission (SEC), provide a regulatory framework for venture capital firms, especially in terms of fundraising, investor protection, and disclosure requirements. Venture capital firms must also consider the implications of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Jumpstart Our Business Startups (JOBS) Act, which can affect fundraising and reporting obligations. When venture capital firms evaluate potential investments in Alaska, they apply the same criteria as they would in any other state, assessing the management team, market size, product-market fit, and competitive landscape of the companies they consider funding.