Definition: A fund raising technique for companies who are willing to exchange equity in the company in return for money to grow or expand the business. Venture capital firms often want a high rate of return (20%+) and will finance the business with $500,000 to millions. A venture capitalist differs from an angel investor in terms of wanting greater control of company and quicker return on investment. Also Known As: VC or Risk Capital or venture capitalist
Examples: The founder of ABC techno start-up need to raise 2 million in venture capital to bring his company to market.
Common Misspellings: none
Related Resources:
Financing
Resources to seek funding and credit.Venture Capital Sources
Guide Mary Bellis has a comprehensive venture capital source for those seeking a VC firm.
Elsewhere on the Web:
Venture Capital Directory
VCAonline.com provides a list of over 60 venture capital firms in the U.S.