You're watching Video Vocab by BusinessEnglishPod.com in this lesson we'll look at vocabulary related to company financing.

All companies need to raise capital to begin operations. These startup companies may choose to bootstrap the company using personal funding to provide seed capital for the early stages.

Or they may seek out angel investors and venture capital by offering equity in rounds of financing called series A, B and C.

They may also seek out strategic investors for extra capital and advice.

capital / to raise capital capital is money or other assets used to start a business company may also raise capital to fund growth or expansion now that we've finished our business plan we're looking to raise enough capital to make it happen start up a start up is a relatively new business that has the potential for growth startups focus on a service that many people want and aim to reach a large market by scaling up after a couple of years at facebook I moved to a new startup in Silicon Valley bootstrap bootstrap bootstrapping is when a person starts a business without a lot of capital or investors Bootstrapping entrepreneurs often invest their own money and a lot of hard work to grow their company we bootstrapped our first company because we couldn't attract any investors personal funding personal funding personal funding is an entrepreneur's own money and assets used to start a new company personal funding might also include loans or gifts from family or friends i started my business with just personal funding including $20,000 from my parents seed capital seed capital the money used initially by a business to begin operating is seed capital Seed capital often includes personal funding or money from wealthy investors our seed capital came from several outside investors and some personal funding from the founding partners angel investor angel investor angel investors are individuals or groups who give money as well as business advice and contacts invest in the early stages of a start-up and typically receive equity in the new company after getting us through the first two years our angel investors sold off his stake and moved on to another startup equity financing equity financing is when a company offers a share of ownership in exchange for money to start or grow the company we're looking at equity financing for our company but we don't want to give up more than twenty-five percent ownership venture capital, VC Venture capital, or VC is a business that invests other people's money in new businesses with good potential for fast growth unless you can show the potential for long-term growth you're going to have trouble attracting venture capital all series a B and C if it is successful a new business may seek additional rounds of financing called series a B and C each round of financing corresponds to a different stage in the growth of a company after a successful first year of business chatbot is hoping around of series b financing will help them expand investor strategic investor strategic investor lends a company not just money but also experience knowledge and business contacts strategic investors normally focus on one industry or field that they know well we're looking for a strategic investor with the experience and contacts to help us succeed in the food industry now it's your turn to practice some of the words we've looked at in this lesson in a moment you'll hear a series of sentences with a word replaced with a beep repeat each sentence including the missing word for example if you here, we were fortunate to get funding from an angel early on you can say we were fortunate to get funding from an angel investor early on will provide answer after each question, ready?

let's give it a go I've put over 50000 dollars of personal into this new business answer I've put over $50,000 of personal funding into this new business many young people dream of getting rich off their own company answer many young people dream of getting rich off their own startup company bob has lots of great ideas but no seed to make any of them happen answer bob has some great ideas but no seed capital to make any of them happen that's all for this episode of video vocab be sure to check out our website at www.videovocab.TV for more videos on business english vocabulary thanks for watching and see you again soon