Venture capital limited partnership

Venture capital limited partnership

A partnership between a startup company and a brokerage firm or entrepreneurial company that provides capital for the new business in return for stock in the company and a share of the profits.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Venture Capital Limited Partnership

An agreement between a venture capital firm and a start-up company in which the venture capital firm provides funding and, in exchange, receives a certain percentage of ownership in the company. In other words, the venture capital firm is the limited partner and the start-up is the general partner, which manages the company. This structure gives the venture capital firm limited liability; that is, if the company goes bankrupt, the venture capital company can lose no more than the amount it invested. It also provides the start-up with capital necessary to continue operations and perhaps become profitable.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
A venture capital limited partnership based in New York City, Core's institutional investors are led by Goldman Sachs.
Therefore, if the company is sufficiently small, qualifying as a CCPC provides tax benefits for (1) employees of the portfolio company who want to invest the proceeds of their share sales in a subsequent venture; or (2) individuals who invest in the venture capital limited partnership where the venture capitalist chooses to invest in the portfolio company via common shares.
Control is determined on a "look through" basis to the ultimate beneficial owner, (73) meaning that if a majority of the investors in a venture capital limited partnership are foreign or public, the limited partnership's stake in the portfolio company will be deemed to be foreign or public.
The act created the Magnolia Venture Capital Corporation and the Magnolia Venture Capital Limited Partnership to "increase the rate of capital formation, stimulate new growth-oriented business formations, create new jobs for Mississippi, develop new technology, enhance tax revenues for the state, and supplement conventional business financing" (Mississippi Legislature 1997, 4).
By the early 1980s, the role and function of SBICs had been eclipsed by innovations in the private sector, particularly the emergence of the venture capital limited partnership as a mechanism for attracting private funds to the venture capital industry.
The credit lines then are used to capitalize fund of funds companies, which invest in venture capital limited partnerships dedicated to Hawaii.
intermediaries, venture capital limited partnerships usually called
Full browser ?