venture capital


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.
Related to venture capital: Venture Capital Firms

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.

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.

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.

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.

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.

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.

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.

References in periodicals archive ?
Walid Hanna, MEVP founder and CEO, said, "MEVP is a pioneer in the venture capital investment industry in this region.
Entrenched male-dominated networks within the venture capital industry and well-established institutional ties, with few new firms being founded, were noted as two of the leading restrictions on women participation.
The article attempts to examine the performance of venture capital, especially the JEREMIE funds, based on the limited available data of the companies involved, which helps to assess the role of the government in bridging the financial gap and solving the problems in the venture capital market in Hungary.
While there is a large number of startup business that qualify for Islamic venture capital, some sectors are excluded, particularly financial services based on interest, businesses related to gaming and gambling, conventional insurance, production or sale of non-halal products including tobacco, non-permissible entertainment activities, stock broking or share trading in Shariah non-compliant securities, as well as hotels, resorts and tourism-related activities that are not Shariah-compliant.
WTR Health is a UK-based venture capital firm that specializes in health care business.
Also, unlike commercial venture funds, The North West Fund for Venture Capital is funded by the European Investment Bank and the European Regional Development Fund.
Venture Capital is similar to risk capital in meaning but the latter refers to long term funds, which have been invested in businesses that include high risk, like small and new companies.
Bernhard Mohr, managing director of Evonik Venture Capital. "This is an exciting company with a unique product offering that has come a very long way and is strategically well positioned to carve out an important market share in the years to come" added Mohr, who is also part of the board of directors at FRX.
International contributors take a critical view of venture capital as a phenomenon, especially as related to the institutional venture capital market.
ISLAMABAD -- Pakistan has great opportunity to tap the true potential of Venture Capital for job creation and acceleration of economic growth on sustainable grounds.
* The investment model of venture capital firms is based on sorting business plans to identify a very small fraction to be funded with a limited amount of money and supported by intensive involvement.
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.

Full browser ?