Skip to main content
risk capital

risk capital

6.0
Money available to invest in new businesses that may lose money
  • noun
  • /rɪsk ˈkæpɪtl/
  • Specialized
translation icon : capital de riesgo
  • Many businesses rely on risk capital to support their growth, especially in industries that involve significant uncertainty.

That's what will scare risk capital away from this asset class.

Autoplay Next

Examples

  • Investors should use only risk capital when funding startups, as these ventures have a high chance of loss.

  • If the potential reward is too small here, the risk capital goes to other oil provinces.

    Blog text (13)
  • And that seems to be partly about the risk capital in the UK.

  • Another problem is the shortage of risk capital.

    Academic text (1995)
  • And there is so much risk capital that's going after a lot of really hard problems.

  • That's why they call it risk capital.

  • That's what will scare risk capital away from this asset class.

  • The U.S. government should establish a risk capital fund to match the capital investment of those medium- and small-scale American companies willing to invest in Russia and other states in the region.

    Academic text (1993)
  • In the United States in 1989, seventy percent of risk capital was invested in knowledge-based firms; in Canada, less than twenty-five percent was invested in such firms.

    Academic text (1993)
  • The availability of risk capital is crucial for entrepreneurs looking to launch new and innovative businesses.

Synonyms

venture capital
vsrisk capital
  • Specialized
32 4.6

Money people invest in new companies that are risky to help them grow

is money reserved to accept high loss risk rather than prioritise returns

Surface Forms

risk capital singular
risk capitals plural

Morphology

risk + capital

The compound meaning 'money for risky investments' is directly and predictably built from 'risk' (chance of loss) + 'capital' (funds), so a learner who knows both words can infer that this is capital used for risky ventures. It is a technical finance term but follows a transparent compositional pattern (e.g. Spanish 'capital de riesgo', French 'capital‑risque'), making it accessible to a B1 learner.

Etymology

Risk capital comes from the image of putting capital, or money, into a new project that might fail and you are willing to risk it. That's why it means 'money to invest in new or risky businesses'.