Capital Infusion

often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. In the context of venture capital, it can also refer to funds received from a venture capitalist to either get the firm started or to save it from failing due to lack of cash.

- Used in capital markets for disclosure, valuation, and investor communication.
- Used when interpreting securities, filings, and market indicators.

- Example: Investors reference **Capital Infusion** when assessing risk/return and interpreting public disclosures.

- Why it matters: Improves transparency for investors and supports pricing, funding, and governance decisions.