Capital infusion

Capital infusion

Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. In the context of venture capital, it can also refer to funds received from a venture capitalist to either get the firm started or to save it from failing due to lack of cash.

Capital Infusion

1. Within a firm, the provision of funds to a relatively unsuccessful division from the profits of another division. Management may infuse a division with capital if it believes that it will eventually become profitable.

2. Funds received from a venture capital firm. Capital infusion may help a start-up survive the first few months or years before it becomes profitable, or it may help a failing business maintain its operations as it restructures or reforms.
References in periodicals archive ?
As the demand for Motif products increases in 1996 and beyond, further capital infusion may be necessary to meet additional capacity requirements and fund growth.
Based in Garland, Texas, KARLEE employs 335 and, with the new capital infusion by TWVF and its co-investor, expects to grow to over 500 employees.
A finance ministry spokesperson said that the capital infusion is expected to meet the dual objectives of providing the credit requirement of the productive sectors of the economy, along with meeting regulatory capital adequacy ratios at the banks.
The leading bank of Germany - Deutsche Bank has pronounced that it will boost its capital base in India via Rs 1054 crore worth of capital infusion in order to support its expansion strategy.
By lowering the rate on corporate capital gains, you would unleash a huge amount of capital into the economy, which would fuel domestic job growth as the new capital infusion generates ever more efficient capital deployment.
Vishwavir Ahuja, Managing Director and CEO, Ratnakar Bank, stated that, The capital infusion has significantly strengthened the financial foundation of the bank and will allow us to continue our investments in new products, branches, technology, etc.
Moody's Investor Services has stated that the capital infusion by the Indian government into 20 public sector banks is a credit positive action.
Another significant opportunity that this capital infusion will provide is the ability for Out-Takes to begin looking at growth through making acquisitions.
SCOR) (Paris, France) in the form of an $80 million capital infusion into its U.
The government s capital infusion move involves two goals of sufficiently fulfilling the credit necessity of the productive sectors and upholding capital adequacy ratios in public sector banks (PSBs) in line with regulatory norms.
Global Banking News-December 4, 2013--Guarantee Insurance announces capital infusion
We are negotiating a capital infusion in the range of $50,000 - $100,000 for inclusion on our balance sheet to funds our operations for the remainder of 2006 fiscal year.

Full browser ?