Definition of venture capital in English English dictionary
money invested in an innovative enterprise in which both the potential for profit and the risk of loss are considerable
money used to support a new or unusual undertakings; equity, risk or speculative investment capital This funding is provided to new or existing businesses which exhibit potential for above-average growth
A main source of financing used to fund startups that do not have access to capital markets It involves investing in high risk and high return projects that are usually innovative in nature and involving lot of uncertainties
A common term for funds that are invested by a third party in a business either as equity or as a form of secondary debt In the event of failure or business wind-up These funds rank behind all other secured creditors
Investments in nonmarketable securities of new companies with high risk and the potential for high return
Money provided by investors to privately held companies with perceived long-term growth potential Professionally managed venture capital firms generally are limited partnerships funded by private and public pension funds, endowment funds, foundations, corporations, wealthy individuals, foreign investors, and the venture capitalists themselves
Financing for new businesses Start-up companies that receive venture capital are perceived to have excellent growth prospects but don't have access to capital markets because they are private companies In return for venture capital, investors may receive a say in the company's management, as well as some combination of profits, preferred shares or royalties Sources of venture capital include wealthy individual investors, investment banks, and other financial institutions that pool investments in venture-capital funds or limited partnerships The risks and rewards of venture-capital investing can be extreme BACK TO TOP
Capital supplied to particularly high-risk projects, such as start-ups or to companies denied conventional financing
Important source of financing for startup companies or others embarking on new or turnaround ventures that entail some investment risk but offer the potential for above average future profits Venture is also referred to as risk capital
money used to support a new or unusual undertaking This funding is provided to new or existing businesses which exhibit potential for above-average growth
Venture Economics uses the term to describe the universe of venture investing (see Private Equity) It does not include buyout investing, mezzanine investing, fund of fund investing or secondaries Angel investors or business angels would also not be included in the definition
An important source of financing used to fund startup and emerging growth companies that usually do not have access to the capital markets VC typically entails significant investment risk but offers the potential for above-average future returns
important source of financing for start-up companies or other embarking on new or turnaround ventures that entail some investment risk but offer the potential for above-average future profits; also called risk capital
Money invested in a start-up company by an outsider in the hope of making big profits-generally when the company goes public
An investment in a start-up business that is perceived to have excellent growth prospects but does not have access to capital markets Type of financing sought by early-stage companies seeking to grow rapidly
Money used to support new or unusual undertakings; equity, risk or speculative investment capital This funding is provided to new or existing firms which exhibit potential for above-average growth
Venture Capital firms invest in private companies that need capital to develop and market their products In return for this investment, the venture capitalists exact a price - significant ownership of the company and seats on the board of directors For the most part, venture capitalists focus on companies in the technology, medical and retail sectors Venture capitalists raise money from institutional investors, state pension funds and high-net worth individuals, usually in the form of partnerships Investors should look at the venture capital firms track record and expertise when evaluating an IPO
Financial capital provided to fund the creation or expansion of a business, especially a highly speculative business with a high potential payback
Funds that are invested by a third party in a business venture, as either equity or a form of debt
Venture Capital is the process by which investors fund early stage, more risk oriented business endeavors A venture capital funding arrangement will typically entail relinquishing some level of ownership and control of the business Offsetting the high risk the investor takes is the promise of high return on the investment
1 Independently managed pools of money from private investors These funds are made available for startup firms and small businesses with exceptional growth potential Managerial expertise is also often provided 2 Outside the United States, venture capital is sometimes more broadly defined to include all private equity
An investment in a start-up business that is perceived to have excellent growth prospects but does not have access to capital markets
Often referred to as 'seed money' This is money loaned to the company in its earliest stages of development Security for that money will carry a high price tag, at the company's expense, as the justification is that high risk on the part of the lender yields high rewards Representation on the board and significant equity ownership are within reason This procedure is generally a last resort to keep a new company operational
finance, usually equity, offered by specialist merchant banks wanting to take a stake in firms with high growth potential, but involving a high risk of loss
Venture capital is capital that is invested in projects that have a high risk of failure, but that will bring large profits if they are successful. venture capitalist n. money lent to someone so that they can start a new business capitalist