Capital Funding

Dictionary Says

Definition of 'Capital Funding'


The money that lenders and equity holders provide to a business. A company's capital funding consists of both debt (bonds) and equity (stock). The business uses this money for operating capital. The bond and equity holders expect to earn a return on their investment in the form of interest, dividends and stock appreciation.
Investopedia Says

Investopedia explains 'Capital Funding'


Entire companies exist whose sole purpose is to provide capital funding. Such a company might specialize in funding a specific category of companies, such as healthcare companies, or a specific type of company, such as assisted living facilities. The capital funding company might also specialize in providing a certain type of funding, such as short-term financing, or it might provide financing of all types. It could also choose to focus on funding a certain stage of the business, such as its construction of a facility, or it might fund businesses at any stage. Venture capitalists are an example of those that provide capital funding.

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