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Entrepreneurship & Startups vocabulary · Fundraising & Investors

Venture capital

Meaning in entrepreneurship & startups, with examples

/ˈventʃər ˌkæpɪtl/nounCore term

In entrepreneurship & startups, venture capital means: Money that professional funds invest in young, fast-growing companies in exchange for equity, accepting high risk in the hope that a few big winners pay for the losses.

In Turkish: girişim sermayesi, risk sermayesi

How it is used

Usually shortened to VC, which can mean the industry, a fund or a person (a VC). People say VC fund, VC firm and VC-backed company. VCs invest money from their own investors, called limited partners or LPs, so they need large exits.

Example sentences

  1. We're not sure venture capital is right for us, because we don't plan to grow that fast.

  2. The company has raised 30 million dollars in venture capital since 2021.

Common collocations

  • venture capital fund
  • venture capital firm
  • raise venture capital
  • VC-backed company
  • investorA person or organisation that puts money into a company in exchange for a share of it or a future return, hoping the company will grow in value.
  • lead investorThe investor who puts the largest amount into a funding round, sets the main terms and often encourages other investors to join.
  • Series AThe first major venture capital round after seed funding, raised when a startup has real traction and needs money to grow a model that already works.
  • angel investorA wealthy individual who invests their own money in very young startups, usually in exchange for equity, and often gives advice and contacts as well.
  • exitThe way founders and investors turn their shares into cash, usually when the company is sold to another company or lists its shares on a stock exchange.

More terms: Fundraising & Investors

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