Wednesday, October 31, 2012

Investment Keyword - VC

 Venture Capital (noun):
  • Funds given to early stage, high potential, high risk, startup companies with no access to capital markets
  • High risk for the investor, but potential for above-average returns
Venture capital fund makes money by owning equity in the companies that it invests in.

“In exchange for the high risk that venture capital investors take on in investing in smaller companies, venture capitalists usually get significant control over company decisions and also a significant portion of the company's ownership (and consequently value).”

Reference, read more: http://www.investopedia.com/terms/v/venturecapital.asp#ixzz2Ap9hIX93

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