An individual who provides capital to one or more startup companies.
Corporate Venture Capital (CVC)
A subsidiary of a large corporation, which makes venture capital investments.
A fund which invests primarily in stocks, usually common stocks.
Fund of Funds
A fund which invests in other funds.
A fund, usually used by wealthy individuals and institutions which is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, arbitrage, and derivatives. Since they are restricted by law to less than 100 investors, the minimum investment is typically $1 million. The general partner usually receives performance-based compensation. Hedge funds are not common in Israel.
A company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. Also called a parent company.
A company or facility designed to foster entrepreneurship and help startup companies, usually technology-related, to grow through the use of shared resources and intellectual capital.
A firm that invests the pooled funds of retail investors for a fee. There are two types: open-end (mutual funds) and closed-end (investment trusts).
The firm that organizes, manages, and administers funds.
An open-ended fund operated by an investment company, which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Benefits include diversification and professional money management. Shares are issued and redeemed on demand, based on the fund's net asset value, which is determined at the end of each trading session.
A fund which purchases a security from another investor rather than the issuer, subsequent to the original issuance in the primary market.
A private equity fund, which invests in troubled companies to cause a sharp, positive reversal in their performance.
Venture Capital (VC) Fund
Funds made available for startup firms and small businesses with exceptional growth potential. Managerial and technical expertise are often also provided. Also called risk capital.
Venture Capital Limited Partnership
Limited partnership that is formed to invest in small startup businesses with exceptional growth potential.