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 ?
MEVFIII aims to address this gap: It is one of the largest venture capital funds dedicated to this region, and will help accelerate the growth of the venture capital ecosystem in meeting the growing demand for technology products and services."
As for the sources of funding for the funds, Azer said that the new generation of successful businesspeople has become educated and risk averse, increasing the ability of venture capital funds to obtain financing on their own, compared to the international financial institutions that require a large sum of market data that cannot be available in an emerging industry.
In the first stages, the venture capital fund would be utilised to finance startup companies in Malaysia and the entire Southeast Asia region and could later be extended to finance entrepreneurial initiatives in other Islamic countries, including the Gulf Cooperation Council (GCC).
Evonik views investment in technology companies and specialized venture capital funds as a way to provide the company with access to new technologies outside of its existing portfolio, focusing on the most important trends in technology and certain geographic regions.
Teralys Capital is a fund of funds created to finance private venture capital funds focused on investing in life sciences, information technology and cleantech companies.
The "action program for the takeoff of the Taiwanese biotech industry" originally envisioned the establishment of NT$60 billion big biotech venture capital fund, to be contributed by the national development fund and the private sector jointly.
The taxpayer's responsibilities included finding investment opportunities (target companies) for the venture capital funds, performing due diligence on those opportunities, calling capital, working with each target company to achieve growth, and liquidating investments before termination of the respective venture capital fund holder.
Chairman of the NWDA Robert Hough chose the announcement to point out that the Interim Venture Capital Fund has successfully filled the gap in public sector venture capital support at a time when public sector monies are being cut.
The venture capital fund will be alloted EUR 30 M, with the JEREMIE initiative providing EUR 21 M of those.
"A Venture Capital Fund would enable us to provide a source of funding for business.
The Government has declined to release a breakdown of how the West Midlands publicly-backed venture capital fund is performing following a report showing a dismal collective return across all the equivalent UK funds.
MANAMA: The Labour Fund and Bahrain-based Venture Capital Bank have unveiled a new growth engine for small to medium enterprises (SMEs) - a dedicated $15 million Venture Capital Fund - Bahrain.

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