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Venture capital

UK //ˈvɛntʃə ˈkæpɪtəl//US //ˈvɛnʧər ˈkæpɪtəl//

Definition

Money provided to startups and small businesses that are deemed to have long-term growth potential.

In simple words: Money invested in new businesses with high growth potential.

Examples

  • The startup secured venture capital to expand its operations.
  • Venture capital is essential for tech companies aiming for rapid growth.
  • Many entrepreneurs seek venture capital to bring their ideas to life.
  • The venture capital firm is investing in renewable energy startups.

Usage notes

Used in business contexts, particularly when discussing investments in startups. It's appropriate in formal discussions but may not be familiar in casual conversations.

Grammar pattern

venture capital + noun (e.g. funding)

Memory hint

Think 'venture' like a new adventure in business that needs capital to grow.

Collocations

  • raise venture capital
  • venture capital firm
  • venture capital funding
  • early-stage venture capital
  • venture capital investment

Synonyms

  • investment funding
  • private equity
  • startup financing
  • seed funding
  • risk capital

Common mistakes

  • Confused with 'venture' as a verb instead of a noun phrase.
  • Incorrectly using 'capital' in a personal finance context instead of business.
  • Mispronouncing or misspelling 'capital' as 'capitol'.