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 New Hampshire, venture capital financing is not governed by a specific set of state statutes but is subject to general state laws on securities, business organizations, and contracts, as well as federal securities laws. New Hampshire businesses seeking venture capital must comply with the New Hampshire Uniform Securities Act, which regulates the offer and sale of securities in the state. This includes the requirement to either register securities offerings or qualify for an exemption from registration. Additionally, the New Hampshire Business Corporation Act provides the legal framework for the formation, operation, and governance of corporations, which are common structures for companies seeking VC funding. At the federal level, the Securities Act of 1933 and the Securities Exchange Act of 1934, along with regulations from the Securities and Exchange Commission (SEC), set forth the disclosure requirements and anti-fraud provisions that apply to venture capital transactions. Venture capital firms will evaluate potential investments in New Hampshire companies based on various factors, including management strength, market size, product-market fit, and competitive landscape, to ensure a high potential for return on investment.