venture capitalism

Risky investment business

Venture capitalism is the practice of investing in early-stage companies with high growth potential in exchange for equity.

Venture capitalists provide funding to startups that are too risky or unproven for traditional bank loans, hoping a few major successes will outweigh inevitable failures.

The term sometimes carries critical connotations, suggesting aggressive profit-seeking at the expense of workers or innovation: Critics accused the firm of venture capitalism run amok.

Related

startup · entrepreneur · pitch · funding · innovation · growth hacking · warrants · equity · contract · preferred stock · launch · finance · accelerators · wealth disparity · unicorns · syndication · economic inequality · pivot

Opposites
economic ideology

venture capitalismsocialism

Communal economic control

communism · central planning · command economy · planned economy · state capitalism

investment/financing model

venture capitalismdebt financing

Raising capital through borrowing

guaranteed returns · bank lending · mortgage lending · bonds · savings accounts

risk appetite

venture capitalismrisk aversion

Preference for certainty

capital preservation · degrowth · bootstrapping

Family

venture, capitalism, capital, ventures, ventured, venturing, venturer, venturesome, adventurous

Familiarity
Top 500,000
Profile
Timeless · Abstract · Rated G