Venture Capital

Definition

• Financial capital provided to high-risk, high-reward start-up companies. Some startups find themselves in need of funding in order to grow, so venture capitalists provide them funding in exchange for equity (ownership) in the company. Venture capital (VC) is a form of private equity.

Synonyms
financial capital, financial assistance, cash injection

Acronyms
VC

Related Terms and Acronyms

• Angel Investors — Definition,
  • Private individuals with capital to invest in business enterprises.
• Closely Held — Definition,
  • Schedule II banks may be closely held, i.e., one party (owner) may hold more than 10% of the outstanding shares. Schedule I banks are prohibited from this type of ownership.
• Equity — Definition,
  • Ownership in an asset.
  • The value of a property minus outstanding mortgage debt and other liens.
• Initial Public Offering (IPO) — Acronym,
  • When shares of a corporation become available to the public for the first time.
• Joint Venture — Definition,
  • A partnership between two or more parties for the purpose of purchasing, owning, and/or developing real estate for a specific purpose and duration.
• Private Equity — Definition,
  • Equity not traded on a stock exchange.
• Seed Funding — Definition,
  • Money used to start a business.
• Startup Company — Definition,
  • A recently founded company that works on new products and services.