venture capital fund

Definition

A pooled investment that uses the money from third-party investors, such as investment banks or wealthy investors, to invest in business projects. Businesses that seek venture capital often carry more risk, and are either unwilling to pay the interest on bank or market loans or are unable to obtain them.

Use this term in a sentence

After my brother sold his technology startup company, he started a venture capital fund to invest in other early stage technology startup companies.

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The company's management was facing trouble and possible bankruptcy in a short amount of time, so they decided to do a deal with a venture capital fund which would hopefully find a way to make it profitable once more.

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After filing for bankruptcy, it became increasingly difficult for the businessman to obtain an acceptable interest rate on a commercial loan; nevertheless, as he believed in new business plan, he began to investigate the use of a venture capital fund to obtain money.

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