One of the biggest difficulties for founders of new ventures is to raise capital for their entrepreneurial endeavors. Based on a discussion of several models of firm development, this paper analyses the financing requirements of young growth companies and describes which sources of financing are available to these firms at different stages of their development. Special emphasis is put on venture capital financing, as this form of financing is particularly suited for young firms with a high potential for growth and value generation. A discussion of the challenges which these firms face when they want to control their financial development concludes this paper.