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Venture Capital


Definition

Venture capital firms represent dedicated pools of capital that provide equity or equity-linked financing for privately held companies.

Using the term Venture Capital :

Despite the large cost decreases required for technological development, the start-up chose to pursue venture capital financing as the projected costs were too high to handle on their own.

Pay Special Attention To :

The venture capital industry is changing given the decreasing amounts of capital required to launch a start-up company. Therefore, an entrepreneur is wise to consider carefully if they truly need venture capital or if they can arrange alternative, less costly, financing. As utilizing venture capital results in some measure of lost control and certainly decreased economics for the founders. This being said, a vast number of venture firms add a significant degree of value for the entrepreneur and can help the company succeed. So the decision of whether to utilize venture capital is not an easy one, but the choice is very important.

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Related terms

private equity , venture capitalist

'Venture Capital' appears in these other terms:

Venture Capitalist 

'Venture Capital' appears in the definitions of these other terms:

Venture Capitalist