V

• Valuation

  The analytical process of determining the current worth of an asset or company.

• Venture Capital

  A type of private equity that focuses on investing in early-stage or start-up companies with high growth potential yet, simultaneously, high risk. Venture capital firms provide funding and strategic guidance to help these companies grow and succeed.

• Vesting

  The process of acquiring the right to receive equity or other benefits over time, often as part of an employee compensation package.

• Venture Studio

  Also called a startup studio business model, is a company that works to build several different companies in rapid succession. Venture studios develop the idea behind a company while simultaneously investing capital.

• Venture Debt

  A type of loan offered by banks and nonbank lenders that is designed specifically for early-stage, high-growth companies with venture capital backing. Often used as a complement to equity investments.

• Venture Capital Funds

  Pooled investment funds that manage the money of investors who seek private equity stakes in startups and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as very high-risk/high-return opportunities.

• Value-at-Risk

  (VaR) a risk management technique used to measure and manage the potential losses of an investment or portfolio over a given period of time, often used by hedge funds and other alternative asset managers.

• Venture Capital Strategy

  A type of private equity strategy that provides capital to emerging companies that often do not have revenues and/or positive cash flow. This is generally a high-risk strategy but typically has the highest return potential.

• Vesting

  The process of acquiring the right to receive equity or other benefits over time, often as part of an employee compensation package.

• Vintage year

  The calendar year in which a private equity or venture capital fund makes its first investment, often used to analyze the performance of funds launched in different years.

• Venture philanthropy

  The application or redirection of principles of traditional venture capital (VC) financing to achieve philanthropic endeavors. Often, it is exercised in the context of charitable startups, green companies, or B corporations, as the venture capitalists offering funding to these types of firms will have the greatest breadth of experience in these areas.