- 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.
financial capital, financial assistance, cash injection
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.