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 Oregon, venture capital financing is governed by a combination of state statutes and federal securities laws. State regulations, under the Oregon Securities Law, require that any offer or sale of securities, which includes venture capital investments, must either be registered or exempt from registration. The Oregon Division of Financial Regulation oversees these activities and provides guidance on compliance with state securities laws. Additionally, federal laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as regulations from the Securities and Exchange Commission (SEC), play a crucial role in venture capital transactions. These laws require proper disclosure of information to investors and regulate the conduct of venture capital firms to protect investors. Venture capital firms in Oregon 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 investment practices. It is important for venture capital firms and startups seeking funding to consult with an attorney to ensure compliance with all relevant securities regulations.