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.