Venture capital limited partnership

(redirected from Venture Capital Limited Partnerships)
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Venture capital limited partnership

A partnership between a startup company and a brokerage firm or entrepreneurial company that provides capital for the new business in return for stock in the company and a share of the profits.

Venture Capital Limited Partnership

An agreement between a venture capital firm and a start-up company in which the venture capital firm provides funding and, in exchange, receives a certain percentage of ownership in the company. In other words, the venture capital firm is the limited partner and the start-up is the general partner, which manages the company. This structure gives the venture capital firm limited liability; that is, if the company goes bankrupt, the venture capital company can lose no more than the amount it invested. It also provides the start-up with capital necessary to continue operations and perhaps become profitable.
References in periodicals archive ?
Founded in 1985, Intersouth Partners manages more than $500 million in six venture capital limited partnerships, focused on the technology and life sciences sectors.
Founded in 1985, Intersouth manages more than $500 million in six venture capital limited partnerships, making it the largest venture capital fund in North Carolina and one of the largest in the Southeast.
Steven Burrill, said recent reforms to venture capital limited partnerships had made it attractive to have an Australia fund.
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