venture capital

(redirected from Startup funding)
Also found in: Dictionary, Thesaurus, Legal.
Related to Startup funding: crowdfunding

Venture capital

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

The provision of funding for a start-up. For example, suppose a company with little access to capital is attempting to open a new market or access an old one with a better product. It may not be able to receive loans, either because of an unproven track record or because it is already significantly in debt, and it may have exhausted financing from family and friends. Venture capital allows this company to begin and build upon its operations by providing necessary funding. Usually, the provider of venture capital takes equity in the company in exchange for the money. Venture capital firms may also provide needed expertise in how to run a business than can help the start-up become successful.

venture capital

A pool of risk capital, typically contributed by large investors, from which allocations are made available to young, small companies that have good growth prospects but are short of funds. Small investors can buy new issues or participate in mutual funds that specialize in the supply of venture capital. Also called risk capital.

Venture capital (VC).

Venture capital is financing provided by wealthy independent investors, banks, and partnerships to help new businesses get started, reach the next level of growth, or go public.

In return for the money they put up, also called risk capital, the investors may play a role in the company's management as well as receive some combination of equity, profits, or royalties.

Some venture capital also goes into bankrupt companies to help them turn around, or to companies that the management wants to take private by buying up all the outstanding shares.

venture capital

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. There are a number of specialist institutions covering this sector of the capital market (see STOCK MARKET), including THREE I'S (formerly Investors in Industry) and the venture capital arms of the COMMERCIAL BANKS, INVESTMENT BANKS and MERCHANT BANKS.

Venture capital investors originally concentrated most of their funding on small start-up businesses offering innovative products, but recently a substantial proportion of their funds has been directed towards the less risky business of financing MANAGEMENT BUY-OUTS of established companies.

The British Venture Capital Association represents firms and institutions operating in this area.

venture capital

any SHARE CAPITAL or LOANS subscribed to a firm by financial specialists (for example, the venture-capital arms of the commercial banks), thus enabling the firm to undertake investment in processes and products that, because of their novelty, are rated as especially high-risk projects and, as such, would not normally attract conventional finance. In addition, in recent years venture capitalists have become increasingly involved in financing MANAGEMENT BUY-INS and MANAGEMENT BUYOUTS. See JUNK BOND, THREE I‘S.

venture capital

A common name given to money raised for investment in high-risk enterprises. Venture capital firms may specialize by industry and/or by stage—seed money for start-ups, midstage firms on the brink of success but needing additional capital, or successful firms capable of expansion to a regional or nationwide platform. There is a National Venture Capital Association ( Sometimes called angel investors.

References in periodicals archive ?
Unequal access to startup funding and financing streams that leave women with fewer credit options and a small portion of venture capital.
com/sex-industry-entrepreneurs-look-beyond-traditional-startup-funding-2566799) Sex Industry Entrepreneurs Look Beyond Traditional Startup Funding
Summary: A new startup funding project launched by a group of local businessmen, has announced its three-point plan to develop an …
Lighter Capital is a provider of revenue-based startup funding for tech companies from USD50,000 up to USD2.
The distribution picture could change in coming years, as PPACA exchange startup funding dries up.
Each of the category winners will receive the chance to further sustain their business and grow for the future as some of the prize packages from the award's partners include enrolment in development programmes, startup funding capital, business coaching, space incubators and accelerators, growth plan development as well as certification and training.
2 million in startup funding, raised $46 million in additional funding, and created more than 300 jobs since the Clean Energy Challenge began in 2011.
7 billion, having received its startup funding from the British Government in the 90s and continually reinvested the proceeds, mainly in locally owned and run private equity funds.
Black Country entrepreneurs, both individuals and teams, aged 16 and over, were invited to pitch their business ideas to a panel, with the pounds 1,500 in startup funding and a package of enterprise support on offer for the best idea.
In order to encourage entrepreneurship, Fort William First Nation has started a community equity investment fund to provide startup funding for business development.
A $100,000 educational tree campaign has been launched to provide startup funding to implement the new program.
But the site, developed by Louis Borders, former chairman of Borders Books, had already picked up $120 million in startup funding.