venture capital fund


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Venture Capital Fund

A pool of funds from investors that exists to provide 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 funds allow this company to begin and build upon its operations by providing necessary funding. Usually, the provider of venture capital funds 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 funds are considered high risk investments, but have the potential for a high return.

venture capital fund

An investment company that invests its shareholders' money in new, very risky, but potentially very profitable, business ventures. See also nondiversified management company.
References in periodicals archive ?
HO-I- FDI inflows have a significant impact on venture capital investments of foreign venture capital funds HO-II- Foreign venture capital funds contributed a major portion of venture capital investments in India.
Foreign venture capital funds increased by up teem times after 2005, due to liberalization of regulations by SEBI.
Foreign venture capital funds are playing an active role in late stage financing.
Securities and Exchange Board of India (SEBI) (2000) Report of the Working Group on Structure if Venture Capital Funds (Chairman K.
And corporations have helped venture capital activity to surge by making substantial investments in venture capital funds, increasing the level of direct investment in private equity transactions and, in some cases, forming their own strategic venture capital subsidiaries.
The first began in the late 1960s and early 1970s, when more than a quarter of the Fortune 500 initiated CPE programs to capitalize on opportunities similar to those identified by some of the early venture capital funds.
It participates in the venture capital market typically by making passive investments in private venture capital funds.
Among IVC products and publications are the Israel Venture Capital Journal (IVCJ), IVC Yearbook and online database containing over 5,000 Israeli high-tech companies, venture capital funds, investment companies, as well as news updates.
PA Early Stage Partners, founded in 1997, is an active and experienced family of venture capital funds that seek portfolio companies located in the corridor from New York to Washington, D.
We are executing on the 21st Century plan, and I am proud that Michigan is positioned to invest $109 million in private equity, mezzanine and venture capital funds, and they, in turn, will finance companies that are diversifying our economy," said James Epolito, president and CEO of the Michigan Economic Development Corporation and chair of the Michigan Strategic Fund Board.

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