Venture Capital Funds


DEFINITION of 'Venture Capital Funds'

An investment fund that manages money from investors seeking private equity stakes in startup and small- and medium-size enterprises with strong growth potential. These investments are generally characterized as high-risk/high-return opportunities.

BREAKING DOWN 'Venture Capital Funds'

Theoretically, venture capital funds give individual investors the ability to get in early at a company's startup stage or in special situations in which there is opportunity for explosive growth. In the past, venture capital investments were only accessible to professional venture capitalists. While a fund structure diversifies risk, these funds are inherently risky.

  1. Venture Capitalist

    An investor who either provides capital to startup ventures or ...
  2. Venture Capital

    Money provided by investors to startup firms and small businesses ...
  3. Seasons

    The current stage of a proposed business idea or concept. Seasons ...
  4. Seed Capital

    The initial capital used to start a business. Seed capital often ...
  5. Series A Financing

    The first round of financing undergone for a new business venture ...
  6. Angel Investor

    An investor who provides financial backing for small startups ...
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  2. How is venture capital regulated by the government?

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  3. What is the difference between a hedge fund and a private equity fund?

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  5. Which mutual funds made money in 2008?

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