| funds invested or available for investment in a new or unproven business enterprise. |
| risk capital n. See venture capital. |
| venture capital n. Money made available for investment in innovative enterprises or research, especially in high technology, in which both the risk of loss and the potential for profit may be considerable. Also called risk capital. venture capitalism n., venture capitalist n. |
Money invested in high-risk enterprises.
Risk Capital
The money that a person allocates to investing in high-risk securities.
Investopedia Commentary
Basically, this is capital that you can lose without having to sleep on the streets. Investors who speculate in options or futures contracts should only use risk capital.
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See also: Casino Finance, Futures, Options, Risk
venture capital