Janet Hager

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Publication Date

Spring 2009


Venture capital plays an important role in the U.S. economy by creating jobs and revenue. Venture capital firms pool the resources of many investors, which include individuals, pension funds, corporations, charities, and college endowments. The firms then invest the pooled fund into new companies. Venture capital has backed some of the most successful and innovative companies in the United States, including Apple, Google, Starbucks, and Whole Foods. Venture capital is particularly important to technological innovation for two reasons. First, venture capital funds innovative projects that cannot gain access to traditional banking funds. Second, venture capital drives technology forward by financing projects that will not be funded by larger companies because of their disruptive nature in the marketplace.