venture capital

Bridgezipf 4.19

Pronunciation

/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. 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. 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