venture capital

Meaning

Venture capital refers to financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. It is a crucial source of funding for new undertakings that do not have access to public funding or traditional bank loans. The tone is professional and formal, typically used in finance, entrepreneurship, and investment contexts.

Examples

• The biotech startup is seeking venture capital to fund its clinical trials.

  The biotech startup is seeking venture capital to fund its clinical trials.

• Without venture capital, many tech giants today would never have got off the ground.

  Without venture capital, many tech giants today would never have got off the ground.

• She works for a venture capital firm that specializes in green energy investments.

  She works for a venture capital firm that specializes in green energy investments.

• Securing venture capital requires a solid business plan and a compelling pitch.

  Securing venture capital requires a solid business plan and a compelling pitch.

• The company raised fifteen million dollars in its latest round of venture capital.

  The company raised fifteen million dollars in its latest round of venture capital.

Common Mistakes

• ✗ We need to find a venture capital to start our app.

  ✓ We need to find venture capital to start our app.

  Venture capital is an uncountable noun. Do not use the indefinite article 'a' before it when referring to the funding itself, though you can say 'a venture capital firm'.

• ✗ He is a venture capital.

  ✓ He is a venture capitalist.

  Venture capital refers to the money or funding. The person who invests the money is called a venture capitalist.

Related Expressions

Practice

• The tech startup managed to secure five million dollars in ________ to scale their operations.

  💡 Funding provided by investors for high-growth startups.

  Show answer

  venture capital

• Many Silicon Valley companies rely on ________ to finance their early-stage research.

  💡 Two-word term for high-risk, high-return investment money.

  Show answer

  venture capital