What is 'venture capital'? Definition & meaning

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

More terms

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Unicorn

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

Capital

Learn what financial capital means

Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Zero-Sum Game

A situation in which one person's gain is another's loss.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

Venture Capital