Risk Capital

Risk Capital
Investment funds allocated to speculative activity. Risk capital refers to funds used for high-risk, high-reward investments such as junior mining or emerging biotechnology stocks. Such capital can either earn spectacular returns over a period of time, or may dwindle to a fraction of the initial amount invested if several ventures prove unsuccessful. Diversification is key for successful investment of risk capital. In the context of venture capital, risk capital may also refer to funds invested in a promising start-up.

The more risk averse the investor, the lower the proportion of risk capital allocated in the total portfolio should be. While young investors, because of their lengthy investment horizons, can have a very significant proportion of risk capital in their portfolios, retirees may not be comfortable with a high proportion of risk capital.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • risk capital — ➔ capital * * * risk capital UK }} US }} noun [U] FINANCE ► VENTURE CAPITAL(Cf. ↑venture capital) …   Financial and business terms

  • risk capital — see capital Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. risk capital n. Mon …   Law dictionary

  • risk capital — n. VENTURE CAPITAL * * * …   Universalium

  • risk capital — n. VENTURE CAPITAL …   English World dictionary

  • risk capital — venture capital Capital invested in a project in which there is a substantial element of risk, especially money invested in a new venture or an expanding business. It is also commonly used in employee or management buyouts (see BIMBO). Risk… …   Accounting dictionary

  • risk capital — venture capital Capital invested in a project in which there is a substantial element of risk, especially money invested in a new venture or an expanding business. It is also commonly used in employee or management buy outs (see BIMBO). Risk… …   Big dictionary of business and management

  • risk capital — rizikos kapitalas statusas Aprobuotas sritis draudimo veikla apibrėžtis Skirtumas tarp gyvybės draudimo sutartyje numatytos pagrindinei rizikai tenkančios mirties atveju mokamos draudimo sumos ir pagrindinei rizikai sudaryto matematinio techninio …   Lithuanian dictionary (lietuvių žodynas)

  • risk capital — risk′ cap ital n. bus venture capital • Etymology: 1945–50 …   From formal English to slang

  • risk capital — noun Money explicitly available for investment into a high risk business or security. Syn: venture capital …   Wiktionary

  • risk capital — /ˈrɪsk kæpətl/ (say risk kapuhtl) noun → venture capital …  

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