Venture Capital Key Terms

Use the right words in seeking investment capital

It's hard to compete successfully for investment capital without understanding venture capital key terms. Beyond a simple definition of venture capital as money invested in innovative start-up businesses or business research, your firm will need a working knowledge of other vocabulary related to raising capital. Your team can find several sources for the definitions and explanations but, as always, some will be better for your purposes than others.

Your team can find definitions for many venture capital key terms in a college economics textbook. However, better sources are business and investment publications, organizations and agencies that specialize in identifying venture capital sources and venture capital firms themselves. In fact, it is a good practice to compare the definitions or explanations so you identify "spin" or any "position" taken by a source. To build your vocabulary of venture capital key terms, do the following things:

1. Use a variety of sources of venture capital terms.

2. Refer to professional business glossaries for venture capital words.

3. Check definitions and explanations with venture capital sources.

 

Start with general venture capital glossaries

To best understand venture capital key terms and information about venture capital companies, first study the definitions from general sources. This will give your team a foundation of understanding and point of comparison. Your team can find a range of general sources of venture capital terms online.
Try: Online glossaries such as those at FundingPost and The 500 Group provide good entry-level definitions of key venture capital terms.

Study business and economic definitions of venture capital words

It's a good idea to continue developing your venture capital funding vocabulary by checking business and financial sources. The definitions your team finds there will include more detail than from general sources and might include recommendations for finding venture capital. Start your comparison of explanations of common terms, especially the more difficult concepts, at this stage.
Try: Use the interactive glossary of terms at LBO Advisers to find definitions for various start up capital words. Your firm can use its detailed definitions to get a working knowledge of the terms. Verify your understanding of venture capital vocabulary with sources such as the well-respected BusinessFinance.com.

Add specific venture capital sources to your vocabulary arsenal

As the final refinement of your comprehension of terms about venture capital, check sources specifically related to finding venture capital. Although the definitions might be rather technical, you can combine your knowledge from other sources for a complete understanding.
Try: The glossary at Angels Corner focuses on venture capitalists, who are called "angels" in the venture capital world. Use the dictionary at Investor Glossary for definitions of venture capital key terms as well as other investment-related words. Note the gallery of words at the bottom of the page and the investment "Chart of the Day" link.

 

• Securing venture capital funds is a business process. Consult a financial planner to make certain your business understands all of the important terms.

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