An important source of financing for start-up companies or others embarking on new or turnaround ventures that entails some investment risk but offers the potential for above average future profits. Venture capital comes from many sources beyond traditional professional venture capital firms (VCs). Other sources of venture capital include individual accredited investors, institutions and some corporations.

or risk capital - money invested in a new business and thus open to a rather large risk of loss.

a segment of the private equity industry which focuses on investing in new companies with high growth rates.

Investment company whose primary objective is capital growth. New assets invested largely in companies that are developing new ideas, products, or processes

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.

A type of funding source that invests into start-up businesses.

Venture capital is funding for new companies. By their very nature, new companies are high risk. The venture capitalist is looking for a high return and usually requires an ownership interest in the new company in return for his investment in the company.

is capital committed to an unproven venture. The initial, start-up money is referred to as "seed money" and entails the greatest risk. If the project gets off the ground it may require additional financing at additional "rounds" or the "mezzanine level" before the company is finally brought to the market and the venture capitalist can enjoy handsome rewards. Experienced investors in venture capital situations typically plan on turning away a minimum of 9 out of every 10 proposals which are brought to them, and then they expect as many failures as successes from their selected investments.

money contributed to an enterprise, especially in the early stages of a new enterprise.

Risk capital invested in privately held companies by VC firms, through the underwriting of newly issued stock and/or convertible bonds

Capital which is subject to more than a normal degree of risk, usually associated with a new business or venture and particularly in relation to new technology projects. Also called Risk Capital. (See also Development Capital).

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.

Financing for start-up companies that entails greater risk than is normally acceptable, but offers the potential for higher returns. In return for their investment, venture capitalists may receive a share of the company's profits, preferred stock and/or common stock from the company. Sources of venture capital include small business investment companies (SBIC), specialized areas of banks, individual investors, investment banks and venture capital partnerships.

Venture capital is a particular type of financing designed for new businesses ( business start-ups). Start-ups are generally unable to access capital markets because they are private companies and, by definition, have no operating track record and little or no income. Venture capital is secured by a start-up not on the basis of its track record or its income but on the basis of its growth prospects. Venture capital is high risk (and, potentially, high reward) and in return for investing in companies at the beginning of their lifecycle, investors may require a say in the company's management as well as equity. Sources of venture capital include wealthy individual investors, investment banks, and other financial institutions that pool investments in venture-capital funds or limited partnerships.

Money available to invest in new, and/or risky, enterprises.

A type of financing available to some promising startup companies. Receipt of venture capital is a signal, but not a guarantee, that a startup is on its way to becoming an established company with the potential for an initial public offering or the potential to be acquired by or merge with another company. There are several stages of venture capital, usually after the company has received financing from angel investors. See angel investor.

Risk capital in the form of equity and/or loan capital which is provided by an investment institution to back a business venture which is expected to grow in value.

An investment in a start-up business, which is perceived to have excellent growth prospects but whose high level of risk limits its access to the Capital markets. This is typical of financing extended to new companies seeking to grow rapidly. Français: Capital-risque Español: Capital (de) riesgo

Funding for new companies, or others embarking on new or turnaround ventures, that entail investment risk but offer the potential for high future returns. Capital invested in a project in which there is a substantial element of risk, especially money invested in a new venture or an expanding business in exchange for shares in the business. Risk capital is normally invested in the equity of the company; it is not a loan.

Funds used for investment in small companies that are considered to be in their first phase of growth. Funding is provided by private and institutional investors.

Also known as risk capital, it is an abnormal risk level usually associated with a new business or ventures where the capital is subject to a high degree of risk.

Companies and funds that invest in start-ups or in the expansion of the existing operations of private companies.... more on: Venture capital

funds invested in enterprises that normally do not have access to conventional sources of capital; usually for a new, risky business venture; providers usually demand a significant portion of the equity ownership.

Capital put in highly risky or speculative investments.

Funds available to invest in new or unproven business enterprises.

Funds provided for the purpose of expanding or setting up a business.

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.

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 profits; also called risk capital. Sources of venture capital include wealthy individual investors; subsidiaries of banks and other corporations as small business investment companies.

Typically high-risk financing, generally in the form of preferred stock convertible into common stock or common stock, or debentures convertible into common stock, often provided to companies not qualifying for other types of financing. The venture capital investor typically requires a high potential of returns, and will structure the investment so that it can be liquidated through an initial public offering, or in some other manner within a three to seven year period.

A pool of funds, typically contributed by large investors, from which allocations are made to young, small companies that have good growth prospects but are short of funds. (See Venture capital fund.) View LEI Lesson(s) that address this term

wealth available for investment in new or speculative enterprises

Funds that are invested by a third party in a business venture, as either equity or a form of debt.

Venture capital is sought by start-up companies seeking investment capital to fund their prospects and ideas. These companies typically do not have access to capital markets.

A source of money for start up companies. This is typically raised by venture capital firms who invest in private companies that need capital to develop and market their products. In return for this investment, the venture capitalists generally receive significant ownership of the company and seats on the board.

Funds invested in a new or start-up business. It is also known as risk capital and is subject to a relatively high level of risk.

A specialized form of private equity, characterized chiefly by high-risk investment in new or young companies following a growth path (see: Stages of Development) in technology and other value-added sectors.

Money raised by companies to finance new ventures.

Finance for a growing business whereby a portion of equity is sold for a major investment in the business

An investment in a new business to provide funds for operations and growth.

Venture capital is a private equity investment in high risk companies and therefore a special form of private equity with the expectation of a high return.

Investment in a new business or ventures.

Money loaned by venture capitalists to new businesses that show the potential for above average growth, usually in new, or unusual industries.

Investment in unquoted businesses which have high growth potential.

Money subscribed in the form of share capital and loan capital to finance new firms and activities which are considered to be of an especially risky nature and hence unable to attract finance from more conventional sources.

An investment in a new initiative or project that is intended to obtain other investments.

A form of financing for a company in which the business gives up partial ownership and control of the business in exchange for capital over a limited time frame, usually 3-5 years. Investments typically range from $500,000 to $5 million, although there are occasionally VC investments for as low as $50,000 or as high as $20 million.

Investment capital for generally small and medium-sized companies with high growth potential that invest in innovative technologies, such as environmental protection and computer systems. Venture capital financings are frequently conducted by a lending institution and accompanied by management consulting services.

An important source of financing for Start-Up companies or others embarking on new or turnaround ventures that entail some investment risk but offer the potential for above average future profits; also called risk capital.

Risk equity investing, generally in private equities of private companies, with a goal of achieving above-average long-term investment returns that compensate for the investment risk. Venture capital includes investments in startups, expansion-stage companies, and emerging growth companies. Venture capital investments are structured so that liquidity can be achieved, usually within three to seven years.

A financing instrument for young companies which are at an early stage of their development or in the start-up phase. Those companies do not yet record profits which is why they have limited access to borrowings and are not yet ready for a stock-exchange listing. Synonym: Risk Capital.

Capital investment to establish a new business, or a new development of an existing business, often in exchange for shares.

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. The investment is usually in the form of stock or an instrument which can be converted into stock at some future date. As the business matures, an initial public offering may take place, or the business merged or sold, or other sources of capital found. Any of these would occur with the intention of buying out the venture capitalists. Venture capitalists typically expect a 20-50% annual return on their investment at the time they are brought out. Venture capitalists typically invest in high growth companies with the potential to generate revenues of $20MM in any one company, but typical investments range from between $500,000 and $5MM. Management experience is a major consideration in evaluating financing prospects.

Capital to finance a new firm, usually from a private backer, corporation, or venture capital firm that specializes in new venture development.

financing-at-risk directed towards an investment, usually without security. Venture capitalists are investors who takes calculated financial risks on startup enterprises. A venture capitalists expects a higher ROI (return on investment) or a rate of return commensurate with the size of the risk taken and access to control in the event an investment is in jeopardy see business venture. definition of venture capital defined definition of risk capital defined definition of venture capitalist defined

Equity finance in an unquoted, and usually quite young, company to enable it to start up, expand or restructure its operations entirely. It's cheaper than bank finance initially because paying dividends can be deferred; it also provides a strategic partner - but it implies handing over some control, a share of earnings and decisions over future sales.

Risk finance (capital) provided by investors (a professionally managed fund or individual/s) to an enterprise (investee) in return for a share of the firm's ownership (equity) and voting control for the ultimate purpose of capital gain.

capital invested in a start-up business that is thought to have excellent growth prospects but does not have access to capital markets because it is a private company.

Investment in more risky industrial companies, often those engaged in high technology.

A mid- to long-term startup or expansion loan extended to a growing business in exchange for equity. Because the market potential of these companies is frequently disproportionate to tangible assets or other collateral, standard bank financing is often unavailable to them. This has given rise to venture-capital companies trained to evaluate long-term potential and find new or growing companies in which to invest.

capital used to co-finance the launch or the development of a new enterprise along with its entrepreneurs. Strictly speaking, Venture Capital is a sub-category of Private Equity and refers specifically to private capital invested for either launching or developing an enterprise or its expansion. Young companies whose commercial and financial values have not yet been tested at market level present a particularly high level of risk. Venture Capitalists who invest in this type of company come in at a low price in the hope that they will make a profit. To maximise their ROI – Return On Investment – Venture Capitalists focus almost exclusively on high-tech companies.

money invested by venture capitalists in startup companies in exchange for equity.

This is used for a medium sized business when they need extra capital but are unable or unwilling to float on the stock market.

Risk capital supplied to small, normally unlisted companies by wealthy individuals, partnerships or corporations in return for an equity position in their firm.

Funds made available for startup firms and small businesses with exceptional growth potential. These are typically raised by venture capital firms that invest in private companies that need capital to develop and market their products. In return for this investment, the venture capitalists generally receive significant ownership of the company and seats on the board.

Money used to support new or unusual commercial undertakings; equity, risk or speculative capital. This funding is provided to new or existing firms that exhibit above-average growth rates, a significant potential for market expansion and the need for additional financing for business maintenance or expansion.

Funds granted to startup firms and small businesses with exceptional growth potential in exchange for ownership or control of the business.

Money invested in new companies where there is the risk of financial loss but the potential for great profit.

The British Venture Capital Association defines venture capital as "a means of financing the start-up, development, expansion or purchase of a company, whereby the venture capitalist acquires an agreed proportion of the share capital (equity) of the company in return for providing the requisite funding". Warranty A document signed by shareholders providing legally enforceable assurances about the status of a company, particularly about taxation matters.

Money given to corporate start-ups and other new high-risk enterprises by investors who seek above-average returns and are willing to take illiquid positions.

Money raised for high-risk investments.

Public or private funds invested in a potentially profitable business enterprise despite risk of loss.

Professional monies co-invested with the entrepreneur to fund an early stage (seed start-up) or expansion venture. Offsetting the high risk the investor takes is the promise of high return on the investment.

Commonly refers to funds that are invested by a third party in a start-up business either as equity or as a form of secondary debt.

Describes the universe of venture investing (see Private Equity). It does not include buyout investing, mezzanine investing, fund of fund investing or secondaries.

Money loaned to companies starting or building a high-risk business.

Money invested in new enterprises.

Funds invested in companies to finance new activities. Typically the investment will include a substantial element of capital invested in ordinary shares (equity) so that the investor's return will include a share of the overall growth in the business. As distinct from borrowing, the investor only recovers his investment if the company realises growth in the value of its shares. If the company fails the investor loses his money.

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.

Venture capital firms raise funds from sources including institutional investors, high net-worth individuals, and state pension funds, and invest in private companies that need an influx of capital in order to develop and market a product or products in exchange for significant ownership, seats on the board of directors, etc.

Mid-to-long term equity or debt investments extended to an early-stage business.

start-up capital for a new business or project

Financing source for new businesses or turnaround ventures with high risk/high reward possible. Venture capital can be anything from seed money to full financing and sources include wealthy individuals, limited partnerships and business investment companies.

Money and resources made available to startup firms and small businesses with exceptional growth potential.

Money made available for investment in innovative enterprises or research, especially in high technology, in which both the risk of loss and the potential for profit may be considerable. Also called "risk capital".

Capital or monies made available for start-up firms and/or other business ventures with growth potential. Capital Sources Group prides itself in aligning the right project (after strong review) with the proper venture capital form or party. 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. 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

Capital which is subject to more than a normal degree of risk, usually associated with a new business or start up operations.

Source of financing for start-up companies and new or turnaround ventures that involve investment risk but offer the prospect for above average future profits--also called "risk capital". Venture capital financing supplements other funds that an entrepreneur is able to tap (or takes the place of loans that conventional financial institutions are unwilling to risk). Venture capital sources include wealthy individual investors, subsidiaries of banks, small business investment companies (SBICs), groups of investment banks and venture capital limited partnerships. In return for taking an investment risk, venture capitalists are commonly rewarded with either profits, royalties, preferred stock, capital appreciation of shares or any combination thereof. See: Entrepreneur; Investment Banking; Risk/Reward Ratio; Venture Capital Limited Partnership

New capital injected into a company to pay for further developments, R&D or improve the balance sheet.

Venture capital is a type of private equity capital typically provided by outside investors for financing new, growing, or struggling businesses. Venture capital investments are generally high-risk investments but offer the potential for above-average returns and/or a percentage of ownership of the company. A venture capitalist (VC) is a person who makes such investments.