Definition of fundraising


Fundraising is the process of seeking capital to build or scale a business. Selling shares in a business to investors is one form of fundraising, as are loans and initial coin offerings. Financing refers both to fundraising from outside sources and to bringing in revenue from selling a product or service.

Related terms

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Startups and Growth โ€บ Fundraising, Growth, and Dilution

โ€‹Definitionโ€‹ Venture capital is a form of financing for early-stage companies that individual investors or investment firms provide in exchange for partial ownership, or equity, in a company. These investors are called venture capitalists (or VCs). Venture capitalists invest in companies they perceive to be capable of growing quickly and commanding significant market share. โ€œVentureโ€ refers to the risky nature of investing in early-stage businessesโ€”typically startupsโ€”with unproven business models.