venture-capital

Vocabulary Word

Definition

'Venture capital' refers to financial funding provided by individuals or groups to start-ups or emerging companies that showcase high growth potential. This type of investment is risky but can yield high returns if successful.

Examples in Different Contexts

In social enterprises, venture capital can support innovative solutions to social issues. An impact investor might state, 'We provide venture capital to startups focused on sustainable energy solutions.'

Practice Scenarios

Tech

Scenario:

Our software solution has a huge market potential, but it requires substantial funding for R&D to stay competitive.

Response:

Venture capital could be a good option for us. With that we can aggressively pursue our R&D goals.

Business

Scenario:

The new startup in town, XYZ Co, brings a unique offering to the market. I've been considering joining their investment round.

Response:

Yes, XYZ Co looks promising. They recently secured venture capital funding which will allow them to scale significantly.