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Venture Capital - Definition
Below, you'll find a definition of this investing term...

Definition: Money invested in startup companies with a lot of growth potential.  Venture capitalists are people who fund these new companies.

TeenAnalyst Advice: New startups are quite risky but venture capitalists invest in them because they get large shares of stock for really cheap.  If the company succeeds and goes public, a venture capitalist can make 10-20 times his original investment!

New startups like to get venture capital funding because it's not a loan so it never needs to be repaid.  But since you're giving stock away, you're also giving away some control.

 

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