Some Handy Definitions

Venture Capital
Money provided by investors to startup firms and small businesses with perceived long-term growth potential. This is a very important source of funding for startups that do not have immediate access to funds.

Venture Capitalist
An investor who either provides capital to startup ventures or supports small companies that want to expand but don’t have access to public funding. Higher returns are expected for additional risk in floundering firms in the hope that they will eventually turn around.

Vulture Capital
Derogatory term for funding or investment that takes unfair advantage of the situation, such as by taking over the weakened firm.

Vulture Capitalist
Slang for a venture capitalist who deprives an inventor of control over his own innovations and most of the money he should have made from the invention. A vulture capitalist makes more money than a venture capitalist for additional risk taken.