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 West Virginia (WV), venture capital financing is not governed by a specific set of state statutes but is instead subject to general state laws that regulate securities, business entities, and contractual agreements. The West Virginia Securities Act, along with federal securities laws such as the Securities Act of 1933 and the Securities Exchange Act of 1934, provide the regulatory framework for venture capital transactions. These laws require proper registration of securities or compliance with exemption requirements for private offerings, which is often the case with venture capital financing. Additionally, the West Virginia Uniform Limited Partnership Act and the West Virginia Code regarding corporations and LLCs outline the legal structures and governance for entities that may be involved in venture capital deals. Venture capital firms must also consider federal regulations, including those enforced by the Securities and Exchange Commission (SEC), when making investments. It is important for companies seeking venture capital and the venture capital firms themselves to work with an attorney to ensure compliance with all applicable laws and regulations.