Risk capital (venture capital)

In general, the investment of money in a transaction with a foreseeable considerable risk of loss, but at the same time with the prospect of above-average profits (money directed in a risky undertaking). – In particular, often also used for loans provided to a young company (start-up) (capital which is devoted to new firms that show probable above-average growth rates, a significant potential for market expansion and the need for knock-on financing). – See investment courage, investment emergency, anti-dilution clause, bad bank, burn-out turnaround, business angel, buy-out, dingo stocks, equity banking, explorer stocks, glamour stocks, gambling effect, hedge fund, locusts, incubator, mutual fund, alternative, junk bonds, disaster bonds, micro-financing, penny stocks, private equity, private equity financing, risk-return principle, risk investor, risk taker, seed capital, single hedge fund, sweat equity, terror securities, turnaround financing, overconfidence, venture capital company, venture capital investment law, tremor premium. – Cf. ECB Monthly Report of October 2005, p. 23 ff. (Development of the venture capital market in Europe since 1995 with overviews), Deutsche Bundesbank Monthly Report of May 2009, p. 56 f. (General public must not become venture capitalists).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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