BNET Business Dictionary
Business Definition for: Venture Capital
- money used to finance new companies or projects, especially those with high earning potential and high risk.
- the money invested in a new company or business venture
- Also known as Risk Capital
Wiktionary Definition for: Venture Capital
- # business money invested in an innovative enterprise in which both the potential for profit and the risk of loss are considerable.
Additional Resources
- Three Keys to Obtaining Venture Capital
- Three Keys to Obtaining Venture Capital is designed to help understand the venture capital process and provides a useful systematic tool for creating a business plan. The venture capital process begins with an introduction to a venture capitalist. Cold calling on venture capitalists is a long shot venture capitalists see...
- White papers 2002-04-26
- Everything You Ever Wanted To Know About Venture Capital Financing Terms - Venture Capital Basics
- Venture capital refers to the money required by an entrepreneur to set up and consolidate a business venture. In recent years, the business world has seen the burgeoning of numerous opportunities for self-starters who have a vision. Therefore, there has been a steep rise in the number of entrepreneurs and...
- White papers 2003-12-04
- What Is Venture Capital: The Venture Capital Industry
- This document introduces venture capital and its advantages. Venture capital is money provided by professionals who invest alongside management in young, rapidly growing companies that have the potential to develop into significant economic contributors. Venture capital is an important source of equity for start-up companies. Professionally managed venture capital firms...
- White papers 2004-02-01
- Creating an Environment: Developing Venture Capital in India
- In the last decade, one of the most admired institutions among industrialists and economic policymakers around the world has been the U.S. venture capital industry. The OECD (2000) report identified venture capital as a critical component for the success of entrepreneurial high-technology firms and recommended that all nations consider strategies...
- White papers 2001-05-01
- Complex Venture Capital Deals Require More Than A Little Knowledge
- When it comes to structuring a venture capital deal, “a little knowledge is a dangerous thing.” This article emphasizes upon raising venture capital, selecting a venture capital firm and then structuring a deal. The terms of a venture capital deal are more complex than the terms for most other forms...
- White papers 2001-03-01
- Essays on the Valuation and Syndication of Venture Capital Investments
- This study focuses on the valuation and syndication of venture capital investments. It constructs and tests a binomial pricing model for staged venture capital investments. The paper demonstrates how investor prominence affects the valuations of venture capital backed companies. It examines the relationship between investment syndication and the efficiency of...
- White papers 2003-02-27
- Building Relationships Early: Banks In Venture Capital
- Venture capital is the capital sought from financial institutions in setting up and consolidating a start-up business. Banks play an important role in the U.S. venture capital market. Banks use their venture capital investments to build sustained relationships with their clients for their lending activities. The paper examines the role...
- White papers 2004-06-01
- Venture Capital And Productivity
- Policy makers typically interpret positive relations between venture capital investments and innovations as evidence that venture capital investments stimulate innovation (VC-first hypothesis). This interpretation is, however, one-sided because there may be a reverse causality that innovations induce venture capital investments (innovation-first hypothesis): an arrival of new technology increases demands for...
- White papers 2003-09-01
- Venture Capital: An Experiment in Computational Corporate Finance
- This paper develops a model to study how entrepreneurs and venture capital investors deal with adverse selection, moral hazard, effort provision, and hold-up problems. The paper examines how efficient is venture capital financing and how much value is lost in the venture capital relationship relative to the first best. It...
- White papers 2004-03-01
- Engineering a Venture Capital Market: Lessons From the American Experience
- This article seeks to identify the core of the U.S. venture capital contracting model, and then assess the extent to which this model provides guidance in fashioning a venture capital market in other countries. The analysis builds on what should be a non-controversial premise - that the manner in which...
- White papers 2002-11-01
- Total U.S. 2002: Venture Capital Report
- Forty five billion dollars in venture capital was invested in 3,528 private U.S.-based companies in 2001, ranking it as the third highest year in venture capital history. Despite the overall decline in venture funding from 2000, several sectors experienced an excellent year, including optical networking, broadband service providers, and healthcare....
- White papers 2002-03-18
- Building Relationships Early: Banks in Venture Capital
- The importance of an investor's organizational structure is increasingly recognized in modern finance. This paper examines the role of banks in the US venture capital market. Theory suggests that unlike independent venture capital firms, banks can seek complementarities between their venture capital and lending activities. The paper's empirical analysis suggests...
- White papers 2004-05-01
- Venture-Capital Financing and the Growth of Startup Firms
- This study examines the association between the presence of venture capital and the employee growth of startups. Grounded in signaling theory, it investigates the impact if any of venture capital financing events upon the growth of these companies and whether the amount of funding affects the intensity of the signal....
- White papers 2002-08-01
- Venture Capital Backed Growth
- The paper proposes a simple equilibrium model of venture capital star-up entrepreneurship and innovation. Venture capitalists not only finance but also advise start-up entrepreneurs and thereby add value to new firms. The paper shows how a productive and active venture capital industry boosts innovation based growth. It also demonstrates the...
- White papers 2004-06-04
- What Do Entrepreneurs Pay for Venture Capital Affiliation?
- This article summarizes the paper titled, "What Do Entrepreneurs Pay for Venture Capital". It says that in the minds of entrepreneurs working to grow their fledgling technology companies, the intangibles brought to the table by venture capital investors are often worth a lot more than money itself. In seeking venture...
- White papers 2004-08-05
- Current Trends in Venture Capital Financing
- This document presents the various venture capital deal terms, which have become more onerous as a result of the current state of the venture capital and technology industry. Understanding the impact of those terms is important to angels in structuring their initial investment as well as situations where they have...
- White papers 2003-05-12
- How To Get A Second Date With A Venture Capitalist
- The demise of venture capital funding has been greatly exaggerated. Far from being dead or even sickly, the market for venture capital is merely back to normal after seeing unprecedented levels of investment during the technology bubble. A business owner looking for money to expand as the economy picks up...
- White papers
- 2003 Global Venture Capital Investment in Perspective
- Global venture capital investment in 2003 experienced its first consistent quarterly increases in four years. Although investment declined overall compared to the previous year, the trend established in 2003 is encouraging. If this trend marks the beginning of a new venture capital investment cycle, as many observers believe it does,...
- White papers 2004-10-25
- A Venture Capital Primer For Small Business
- Small businesses never seem to have enough money. Bankers and suppliers, naturally, are important in financing small business growth through loans and credit, but an equally important source of long term. Venture capital financing may have an extra bonus, for if a small firm has an adequate equity base, banks...
- White papers 2003-01-01
- Risk Capital: Venture Capital Market
- Canada's venture capital industry broke records in 2000 but faced new challenges in 2001. On the surface, it appears to be a good thing that Canadian firms are able to attract foreign-based venture capital investments to support their growth. It would be troubling, if this led to an increase in...
- White papers 2002-10-15
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