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Venture Capital
Term category: General Business
In 10 words or less:  Money that is used to finance start-up companies.

Definition: Money invested in startup companies with a lot of growth potential. Venture capitalists are people who fund these new companies.

StockJargon Advice: New startups are quite risky but venture capitalists invest in them because they get large shares of stock for really cheap. If the company succeeds and goes public, a venture capitalist can make 10-20 times his original investment!

New startups like to get venture capital funding because it's not a loan so it never needs to be repaid. But since you're giving stock away, you're also giving away some control.

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Related Books

Inside Secrets to Venture Capital by Brian Hill
eBoys by Randall Stross
Attracting Investors by Philip Kotler
How to Raise Capital by Jeffrey Timmons

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