What does venture capital mean?

Definitions for venture capital
ven·ture cap·i·tal

This dictionary definitions page includes all the possible meanings, example usage and translations of the word venture capital.

Princeton's WordNet

  1. venture capital, risk capitalnoun

    wealth available for investment in new or speculative enterprises

Wiktionary

  1. venture capitalnoun

    money invested in an innovative enterprise in which both the potential for profit and the risk of loss are considerable.

Wikipedia

  1. Venture capital

    Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue, scale of operations, etc). Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. Because startups face high uncertainty, VC investments have high rates of failure. The start-ups are usually based on an innovative technology or business model and they are usually from high technology industries, such as information technology (IT), clean technology or biotechnology. The typical venture capital investment occurs after an initial "seed funding" round. The first round of institutional venture capital to fund growth is called the Series A round. Venture capitalists provide this financing in the interest of generating a return through an eventual "exit" event, such as the company selling shares to the public for the first time in an initial public offering (IPO), or disposal of shares happening via a merger, via a sale to another entity such as a financial buyer in the private equity secondary market or via a sale to a trading company such as a competitor. In addition to angel investing, equity crowdfunding and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and early-stage companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the companies' ownership (and consequently value). Companies such as Stripe, Airtable, and Brex are highly valued startups, commonly known as Unicorns where venture capitalists contribute more than financing to these early-stage firms; they also often provide strategic advice to the firm's executives on its business model and marketing strategies. Venture capital is also a way in which the private and public sectors can construct an institution that systematically creates business networks for the new firms and industries so that they can progress and develop. This institution helps identify promising new firms and provide them with finance, technical expertise, mentoring, talent acquisition, strategic partnership, marketing "know-how", and business models. Once integrated into the business network, these firms are more likely to succeed, as they become "nodes" in the search networks for designing and building products in their domain. However, venture capitalists' decisions are often biased, exhibiting for instance overconfidence and illusion of control, much like entrepreneurial decisions in general.

ChatGPT

  1. venture capital

    Venture capital is a type of private equity financing that investors provide to startup companies and small businesses they believe have long-term growth potential. These investments typically involve substantial risk but also have the potential for above-average returns. Venture capitalists can also provide expertise, guidance, and connections to help grow the business, in addition to the financial investment.

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Numerology

  1. Chaldean Numerology

    The numerical value of venture capital in Chaldean Numerology is: 9

  2. Pythagorean Numerology

    The numerical value of venture capital in Pythagorean Numerology is: 5

Examples of venture capital in a Sentence

  1. Janet Yellen:

    We’re well aware that many startup firms have deposits and venture capital firms have deposits at this bank that have been affected by its failure, so this is something we’re working to try to resolve.

  2. Chris Bulger:

    It's still a good game, just in the last two rounds you're not getting venture capital-like returns for the risk you are taking.

  3. Zach Aarons:

    There's certainly more venture capital than ever before coming into this space, more strategic capital.

  4. Richard Seewald:

    We are looking at companies... where revenue growth is accelerating and early stage risk has dissipated, often those companies are... at a point where they have been growing rapidly over the last three to five years, raised money from top-flight U.S. venture capital funds and are looking now to go international.

  5. Narayan Prasad:

    No venture capital firm which does tech investments in India has invested an amount of this size in space technology before.


Translations for venture capital

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"venture capital." Definitions.net. STANDS4 LLC, 2024. Web. 22 Dec. 2024. <https://www.definitions.net/definition/venture+capital>.

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