What is public venture capital? originally appeared on Quora, the place to gain and share knowledge, empowering people to learn from others and better understand the world. You can follow Quora on Twitter, Facebook, and Google Plus.

Public venture capital refers to raising capital in the $5M to $100M+ range on the public markets versus through traditional venture capital sources. In the Canadian capital markets, TSX Venture Exchange offers a unique platform for early stage, high growth companies in diverse sectors to raise those Series B+ rounds and take advantage of the benefits of being a public company, including:

· Access to capital for multiple rounds of financings. With public venture capital, you can do several rounds of capital and then graduate to TSX and dual list onto a U.S. exchange.

· Acquisition currency (i.e. public stock) to acquire competitors, technology, etc. Many TSXV companies have an aggressive acquisition strategy they want to deploy.

· Diversified shareholder base from a few shareholders with potentially onerous terms to a flat cap table of common shareholders. This is a big difference from traditional VC funding whereby the VC will typically have preferred shares and have greater control of the company’s operations and growth and exit strategy.

· Public shares that can be used as a recruitment incentive to attract quality talent. This is especially critical as U.S. companies are staying private significantly longer than in the past.

· Being listed on an internationally regulated stock exchange can provide credibility and exposure, particularly important if working with Fortune 500 clients.

This question originally appeared on Quora. More questions on Quora:

* Stock Exchanges: What does the process look like for a small- or mid-sized company to raise money through the Toronto Stock Exchange?

* Venture Capital: What types of companies are best suited to TSX and/or the venture exchange?

* Canada: What are the advantages for the US companies of listing and raising capital on Canada’s equity markets?

Photo Credit: DigitalVision/Getty Images