Investor Glossary-venture capitalInvestor Glossary-venture capitalInvestor Glossary-venture capitalInvestor Glossary-venture capitalInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Venture Capital

The HTML to link to this page
 

Venture capital is a source of funding for a high risk, but potentially high return, new business venture. Most venture capital is obtained from one or more venture capital firms, generally in exchange for an equity stake and a measure of control. Traditionally, venture capital has been considered difficult to obtain, and only proven firms with a capable management team could secure such financing. In the dot com boom, speculative investment reached such a crescendo that far more money flowed from investors into venture capital funds. More venture capital dollars looking for businesses to fund in the late 1990s made obtaining venture capital backing much easier, at least for a while. For venture capital investors, some of those speculative deals were very successful. Many firms with venture capital backing at the time quickly went public, cashing out the venture capital investors. Subsequent shareholders did not always share the venture capital investors' success, with some poorly conceived startups failing after their IPO. In both spoken and written business language, venture capital is often abbreviated VC.



Rate this venture capital definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, APR, liquidity ratio, labor relations, VIX, current ratio, 1031 exchange, balance sheet, ex-dividend, FTSE, risk management, Zero Cost Collar, retained earnings, dividends payable, stock market close, phantom income, diluted share, debt service coverage, required rate of return, 1035 exchange, command economy, inflation, 144a, real GDP, annual return, limit order, deferred tax, stock split, 401a, wholly-owned subsidiary, margin rate, class C shares, option premium, in escrow, open position, deferred revenue, Key Rate Duration, minority interest, per diem, ex-dividend date, covered put, reverse mortgage, cancelled check, average price per share, FICO score, quality assurance, LIBOR, irrevocable trust


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use