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

Yield

Income from an investment as a percentage of its current price.

Beta

Learn what Beta stands for in finance.

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

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).

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Venture Capital