What is 'venture capital'? Definition & meaning

More terms

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Venture Capital