venude.html - In business jargon, enterprise that involves a substantial
degree of risk or speculation,
particularly the financing of small new businesses. Used
especially in compounds: venture arbitrage, risk arbitrage; the
activity of
an arb; venture buyout, a buyout financed
by risk capital; venture capital, risk capital;
money that is
put up for
speculative investment; venture capitalism, the
system or
practice of
investment based on risk capital,
especially in new and innovative high-capital projects; the
activity of a venture
capitalist.
Etymology : A business or
enterprise that has a
substantial risk of
loss as
well as
gain has been
known as a venture since the sixteenth century; the compounds defined
here extend that
concrete sense into
something more abstract: the whole
practice of founding business on risk and
speculation.
History and
Usage: The
idea of venture capital is not at
all new--the
term has been used since the forties--but the
whole area of venture capitalism
grew and developed in a new
way in the US during the sixties and seventies and the UK
during the
early eighties, giving
rise to
new uses for venture in compounds. The
main reasons for the
change were the growth of
risk arbitrage (
for history , see
under arb) and the
official encouragement of small businesses (see
enterprise+culture ) which took place
at this time. For the first time, venture capitalism became a profession in its own
right, with individuals and institutions which specialized in it alone; this happened first in the US and was mirrored in the UK and Australia a
decade or so later. Organizations providing venture capital were
seen as the foundation on which business growth could
be built, since it was these organizations that funded the small firms trying to
market the results of the technological revolution. A shoeshine
boy had been
working the
crowd near their table...'This is venture capitalism,
Warren. Be supportive.' William Garner Rats' Alley (1984), p.
146 'Venture capitalism is basically placing equity-oriented capital in businesses that have prospects for high and
rapid capital expansion,' explained the businesswoman. Chicago Tribune 28 Oct. 1985, p.
20 Following the
MBO has come, for
example, the venture
buyout and the buy-in. Daily
Telegraph 30 Oct. 1989, Management Buyouts Supplement, p.
vi The wider issues that are generally ignored in the brutal
world of
town planners and venture capitalists.
Vogue Sept. 1990, p.
376 and the
official encouragement of small businesses (
see enterprise+culture ) which
took place at this time. For the first
time, venture capitalism
became a
profession in
its own right ,
with individuals and institutions which specialized in it alone;
this happened
first in the
US and was mirrored in the
UK and Australia a
decade or
so later. Organizations
providing venture capital
were seen as the
foundation on
which business growth could be built,
since it was these organizations that funded the
small firms
trying to
market the results of the
technological revolution. A
shoeshine boy had been working the
crowd near their table...'This is venture capitalism,
Warren .
Be supportive.' William
Garner Rats'
Alley (1984), p.
146 'Venture
capitalism is basically placing equity-oriented capital in businesses that
have prospects for
high and
rapid capital expansion,' explained the businesswoman. Chicago Tribune 28 Oct. 1985, p.
20
Following the
MBO has come, for
example , the venture
buyout and the buy-in.
Daily Telegraph 30 Oct. 1989,
Management Buyouts
Supplement,
p.
vi The wider issues
that are
generally ignored in the
brutal world of
town planners
and venture capitalists.
Vogue Sept. 1990, p. 376
