venture capital
Bridgezipf 4.19Pronunciation
/ˈvɛntʃər ˈkæpɪtəl/(VEN-chur KAP-ih-tul)
Part of speech
nounfinance / business
Chinese
风险投资
Definition
Financing provided to early-stage, high-potential startups in exchange for equity — investors accept high risk of failure in exchange for the chance of outsized returns if the company succeeds.
Word family
- venturecapitalist /VC/ (n) 风险投资人
Collocations
- venture capital firm
- venture capital funding
- raise venture capital
- venture capital investment
- venture-backed startup
- VC round
Examples
- 1.Google, Amazon, and Facebook all received venture capital in their early stages — small investments that generated returns of thousands of percent when the companies went public. (startup financing)
- 2.The venture capital model expects most investments to fail: out of ten bets, seven might lose money, two might break even, and one might return 100x — paying for all the others. (portfolio strategy)
Synonyms
- startup funding (money for new companies)
- risk capital (investment with high risk/reward)
- angel investment (earlier-stage, individual investor — related)
Etymology
"venture" from Old French "aventure" (chance, fortune) — from Latin "adventura" (about to happen) + "capital" from Latin "capitalis" (of the head) — money put at risk on what might happen