Venture Capital

Venture Capital is an investment company whose primary goal is capital growth. New assets are largely invested in companies that are developing new ideas, products, or processes, and are also referred to as venture capital. Venture capital is capital committed to an unproven project. The seed money for a startup is referred to as “seed money” and carries the highest risk. If the venture takes off, it may require additional funding in additional “rounds” or “mezzanine level” before the company is finally brought to market and the venture capitalist can enjoy good rewards. Experienced investors in venture capital situations typically plan to reject at least 9 out of every 10 proposals they are presented with, and thus expect as many failures as successes from their chosen investments.

- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.

- Example: Finance teams use **Venture Capital** when planning funding needs and managing cash and risk.

- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.