Also found in: Encyclopedia.
2. An investor who buys the rights to a new product or invention in order to profit from its sale. The term is somewhat derogatory as vulture capitalists deprive inventors of the money they would make otherwise. However, vulture capitalists may be in a better position to market these new products than the inventors themselves. See also: Vulture fund, Venture capital.
(1) A person or firm who accumulates cash and commitments for cash in order to take advantage of an anticipated temporary plunge in real estate values.At the proper time,the vulture capitalist will buy virtually every distressed property it can acquire,to resell when the market returns. (2) A derogatory term applied to venture capitalists, some of whom have a reputation of investing in a business in the hopes it will fail, at which point the venture capitalist takes over the assets and liquidates them at a profit.