venture capital

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Related to Venture capital funds: Private Equity Funds

Venture capital

An investment in a start-up business that is perceived to have excellent growth prospects but does not have access to capital markets. Type of financing sought by early-stage companies seeking to grow rapidly.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Venture Capital

The provision of 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 allows this company to begin and build upon its operations by providing necessary funding. Usually, the provider of venture capital 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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

venture capital

A pool of risk capital, typically contributed by large investors, from which allocations are made available to young, small companies that have good growth prospects but are short of funds. Small investors can buy new issues or participate in mutual funds that specialize in the supply of venture capital. Also called risk capital.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Venture capital (VC).

Venture capital is financing provided by wealthy independent investors, banks, and partnerships to help new businesses get started, reach the next level of growth, or go public.

In return for the money they put up, also called risk capital, the investors may play a role in the company's management as well as receive some combination of equity, profits, or royalties.

Some venture capital also goes into bankrupt companies to help them turn around, or to companies that the management wants to take private by buying up all the outstanding shares.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

venture capital

money subscribed in the form of SHARE CAPITAL and LOAN CAPITAL to finance new firms and activities which are considered to be of an especially risky nature and hence unable to attract finance from more conventional sources. There are a number of specialist institutions covering this sector of the capital market (see STOCK MARKET), including THREE I'S (formerly Investors in Industry) and the venture capital arms of the COMMERCIAL BANKS, INVESTMENT BANKS and MERCHANT BANKS.

Venture capital investors originally concentrated most of their funding on small start-up businesses offering innovative products, but recently a substantial proportion of their funds has been directed towards the less risky business of financing MANAGEMENT BUY-OUTS of established companies.

The British Venture Capital Association represents firms and institutions operating in this area.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

venture capital

any SHARE CAPITAL or LOANS subscribed to a firm by financial specialists (for example, the venture-capital arms of the commercial banks), thus enabling the firm to undertake investment in processes and products that, because of their novelty, are rated as especially high-risk projects and, as such, would not normally attract conventional finance. In addition, in recent years venture capitalists have become increasingly involved in financing MANAGEMENT BUY-INS and MANAGEMENT BUYOUTS. See JUNK BOND, THREE I‘S.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

venture capital

A common name given to money raised for investment in high-risk enterprises. Venture capital firms may specialize by industry and/or by stage—seed money for start-ups, midstage firms on the brink of success but needing additional capital, or successful firms capable of expansion to a regional or nationwide platform. There is a National Venture Capital Association (www.nvca.org). Sometimes called angel investors.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
- Launch 2.6 trillion won worth of venture capital funds this year, out of the 10 trillion won
Middle East Venture Partners (MEVP) today announced the launch of its third MENA venture capital fund -- the Middle East Venture Fund III (MEVFIII) -- with a target size of $250 million.
CEO of KI Angel Venture Capital Fund Khaled Ismail said that there must be a clear separation between small and medium enterprises (SMEs) and startups.He explained that SMEs are often small family companies already existing in the market with the aim of growing, while startups are riskier and require more time and effort from investors.
Teralys Capital has announced a $15 million investment in Iris Capital III, a $200 million international venture capital fund well-capitalized to support high-growth enterprises.
17) the revised "action program for the takeoff of the Taiwanese biotech industry," according to which the government will encourage the formation of medium and small biotech venture capital funds ranging in scale from NT$500 million to NT$1bilion and the national development fund will invest in individual projects directly.
The Danish EU Presidency went too quickly with its announcement, on 28 June, that it had reached a first-reading agreement with the European Parliament on European venture capital funds. At the 11 July meeting of the Committee of Permanent Representatives of the member states (Coreper), several participants refused to back the text agreed by the negotiators for Parliament, the Council and the Commission.
12 (2011), the Tax Court found that a venture capitalist's $3.6 million bad debt was incurred in connection with his carrying on a trade or business of managing venture capital funds and was fully deductible as an ordinary loss under Sec.
SMALL firms should have easier access to venture capital funds, the new head of the UK's bosses' organisation, the CBI, has said.
So far North East Finance, which is co-ordinating investments through FBNEF's six venture capital funds, says there have been more than 500 inquiries and around a fifth of them are from firms looking to relocate to the region.
Regional Venture Capital Funds - set up in nine regions to invest in small and medium-sized companies - showed a pooled interim rate of return of minus 15.7 in December 2008, with all nine funds registering negative returns, according to a report released earlier this month by the National Audit Office.
Many private equity funds, particularly venture capital funds, have used cost or the value of the latest round of financing as an approximation of fair value.
Indeed, one of the abiding ironies of the current environment is that venture capital funds are increasingly flush.

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