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 North Carolina, venture capital financing is governed by a combination of state and federal securities laws. These laws regulate how investment can be sought and made, ensuring the protection of investors and the integrity of financial markets. North Carolina's Department of the Secretary of State, Securities Division, oversees the compliance with state securities laws. Companies seeking venture capital must comply with regulations regarding the registration and disclosure of securities offerings, unless an exemption applies. Federal laws, enforced by the Securities and Exchange Commission (SEC), also apply, including regulations under the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require detailed disclosures and filings for companies seeking public investment. Venture capital firms, while evaluating potential investments in North Carolina, must also adhere to these regulations and perform due diligence to ensure that the companies they invest in are compliant with all relevant laws.