Venture Capital
Venture Capital Meaning:
In venture capital terminology, the term Venture Capital refers to capital made available to start-up companies and small businesses with strong potential for future growth in exchange for equity and not as loans. Often, Venture Capital will consist of technical and managerial assistance, as well as monetary funding.
In venture capital terminology, the term Venture Capital refers to capital made available to start-up companies and small businesses with strong potential for future growth in exchange for equity and not as loans. Often, Venture Capital will consist of technical and managerial assistance, as well as monetary funding.
For example, Venture Capital might make sense for a biotechnology start-up company with proven patents that needs a capital infusion in order to make their product available to a wider audience. In exchange for equity in the company, Venture Capital can be raised to fund the necessary research and marketing to allow for the company’s growth. The Venture Capital provider is compensated with a handsome return once the company has a realization event such as an Initial Public Offering or the company is sold off to another investment group. Venture Capital makes up many entrepreneurs’ initial method for the funding of their potentially profitable business ventures.