For those not familiar with investing, a common question is: where do venture capital firms get their money? And what does this flow of capital look like? There are several main avenues of capital, and this following graphic shows a very simplified version of the process.
Source Funders: These are the organizations that usually own large conglomerations of their own money, or invested money from individual customers. This category includes a wide array of institutions, including pension funds, endowments, charitable foundations, insurance companies, and large corporations.
Indirect Investors: These are usually either Advisory Firms, or Fund of Funds firms. They provide an indirect method of investing for Source Funders, rather than a direct investment into a venture capital firm.
Venture Capital Firms: While their capital comes mainly from outside sources, VCs are usually the deciders in where this money goes, how much of it, and to what companies. For many startups, VCs are the major source of funding.
Visualizing the Sociological Theory of types of place and venture capital based off of domestic funding percentages
Learn to use the visualization.