Definition
A form of financing for a company in which the business gives up some level of ownership and control of the business in exchange for capital over a limited time frame, usually 3-5 years. The exit of the venture capitalist can be an IPO, a merger or acquisition, or a buyout of the investor. Most commonly the investment takes the form of private stock in the venture or a legal instrument which can be converted to stock. Investments range from $500,000 to $5 million, although there are occasionally investments for as low as $50,000 or as high as $20 million.
Related Terms
Related Information
- Venture Capital
- Basis for Venture Capital Decisions
- Venture Capital Do's and Don'ts
- How to Attract Venture Capital
- Venture Capital Glossary
Related Books
- The Entrepreneur's Guide To Preparing A Winning Business Plan and Raising Venture Capital
- Inside Secrets to Venture Capital
- Negotiating Term Sheets & Valuations in Venture Capital Deals: Specific Negotiation Strategies, Roles & Motivations For Every VC Deal Participant
- Raising Venture Capital
- Term Sheets & Venture Capital Documents Diskette: Ready to Use Word Documents featuring a Term Sheet, Non-Disclosure Agreement & Due Diligence Checklist That Can be Customized
- The VC Way: Investment Secrets from the Wizards of Venture Capital
- Venture Capital: The Definitive Guide for Entrepreneurs, Investors, and Practitioners
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