venture capitalism

Venture capitalism is a system of business financing in which wealthy groups invest money in small, new companies that they believe have potential to be extremely successful.

The venture part of venture capitalism explains a lot about this type of investing — it's a word that means "a risky undertaking." When someone practicing venture capitalism decides to put money in a brand new startup, they know they risk losing it all. On the other hand, they believe in the possibility that this new business will grow rapidly and earn them enormous amounts of money, also known as capital.

Definitions of venture capitalism
  1. noun
    capitalism that invests in innovative enterprises (especially high technology) where the potential profits are large
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    type of:
    capitalism, capitalist economy
    an economic system based on private ownership of capital
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