expression

venture capital

funding provided to startups with high growth potential

In Banking & Finance

In more detail

money that is invested in new, risky business projects with the hope of making large profits

Examples

The startup received venture capital from several investors to develop their new technology.

How to use venture capital

Venture capital refers specifically to financing for early-stage or growth companies with high risk and high return potential, typically provided by specialized investment firms or funds. It is a technical term commonly used in business and finance contexts, distinct from other forms of corporate financing like debt or bank loans.

Common phrases

venture capital firm
venture capital fund
raise venture capital
venture capital backed
venture capital investment

Synonyms

risk capital · startup funding · growth capital · equity investment

Word family

venture capitalist · venture capital

A common mistake

Learners sometimes use it to refer to any business investment or startup funding generally, when it more precisely describes equity investment from professional VC firms focused on scaling high-growth companies.

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