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. Angel Investor

    An investor who provides financial backing for small startups ...
  5. Seed Capital

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

    The first round of financing undergone for a new business venture ...
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  1. What factors are most important to mezzanine financiers?

    Mezzanine financing is used as a bridge in capital funding between senior debt provided by conventional financial institutions ... Read Full Answer >>
  2. How is venture capital regulated by the government?

    Venture capitalists and their private equity firms are regulated by the U.S. Securities and Exchange Commission (SEC). Venture ... Read Full Answer >>
  3. What is the difference between a hedge fund and a private equity fund?

    Although their investor profiles are often similar, there are significant differences between the aims and types of investments ... Read Full Answer >>
  4. Can mutual funds invest in hedge funds?

    Mutual funds are legally allowed to invest in hedge funds. However, hedge funds and mutual funds have striking differences ... Read Full Answer >>
  5. What are the risks of annuities in a recession?

    Annuities come in several forms, the two most common being fixed annuities and variable annuities. During a recession, variable ... Read Full Answer >>
  6. Do financial advisors get paid by mutual funds?

    Financial advisors are reimbursed by mutual funds in exchange for the investment and financial advice they provide. A financial ... Read Full Answer >>

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