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venture capital

/ˌvɛntʃər ˈkæpədl/
IPA guide

Venture capital is the money a private group invests in a new, exciting business. Well-known startups like Spotify and WhatsApp owe much of their success to venture capital.

In the business world, the term venture capital is a common way to talk about a fairly risky type of investment. When a brand new or growing business needs a large amount of money (or capital), its owners often seek venture capital, offering partial ownership in return. The banks, groups, or individuals who invest venture capital are taking a chance (that's the venture part of the equation), hoping that their investment will pay off eventually.

Definitions of venture capital
  1. noun
    wealth available for investment in new or speculative enterprises
    synonyms: risk capital
    see moresee less
    type of:
    capital, working capital
    assets available for use in the production of further assets
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