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 Florida, venture capital financing is governed by a combination of state statutes and federal securities laws. Florida does not have specific statutes that exclusively regulate venture capital firms; however, these firms must comply with general business laws, securities regulations, and professional conduct standards. At the federal level, venture capital firms are subject to the regulations of the Securities and Exchange Commission (SEC), including the Securities Act of 1933 and the Securities Exchange Act of 1934, which govern the offer and sale of securities to protect investors. Additionally, venture capital firms may be required to register with the SEC under the Investment Advisers Act of 1940, unless they qualify for an exemption. Florida-based companies seeking venture capital must ensure they comply with these regulations, which include disclosure requirements and anti-fraud provisions. The strength of the management team, market size, product-market fit, and competitive landscape are key factors that venture capital firms in Florida, as elsewhere, consider when deciding to invest in a startup.