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Launchopedia
    • Home
    • How to…
      • Recent Posts

        • The MOST Important Aspect – First Impression Funding

          The MOST Important Aspect – First Impression Funding

        • Why Startup Investors Hate Debt

          Why Startup Investors Hate Debt

        • The Holy Grail of Entrepreneurship: The Term Sheet, Pt. 3 – Capitalization Table

          The Holy Grail of Entrepreneurship: The Term Sheet, Pt. 3 – Capitalization Table

        • 6 Key Lessons for Business Improvement at Your Startup

          6 Key Lessons for Business Improvement at Your Startup

        • Startup Funding: Meet the Players at the Table

          Startup Funding: Meet the Players at the Table

      • More in How To

        • How to Build a Winning Team
        • How to Create a Strategy, Vision and Mission
        • How to Create an Advisory Board
        • How to Get Funding
        • How to Improve Your Company
        • How to Improve Your Pitch
        • How to Start Your Company
    • Funding Life Cycle
      • Concept Stage
      • Seed Stage
      • Early Stage
      • Growth Stage
      • Mezzanine Financing
    • Startup Ecosystem
      • Recent Posts

        • Entrepreneurial Ecosystem Spotlight: Nashville, TN

          Entrepreneurial Ecosystem Spotlight: Nashville, TN

        • Entrepreneurial Ecosystem Spotlight: Knoxville, TN

          Entrepreneurial Ecosystem Spotlight: Knoxville, TN

        • Accelerators Focusing on Women-led Startups

          Accelerators Focusing on Women-led Startups

        • Funding Options for Women Entrepreneurs: An Improving Ecosystem

          Funding Options for Women Entrepreneurs: An Improving Ecosystem

        • Entrepreneurial Ecosystem Spotlight: Tri-Cities, TN/VA

          Entrepreneurial Ecosystem Spotlight: Tri-Cities, TN/VA

      • Startup Stories

        • Business Startup Spotlight
        • Women Entrepreneurs Spotlight

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Committed Capital

April 28, 2015 by FundingSage -

The total dollar amount of capital pledged to a private equity fund.3


Related Terms

Vulture Capitalist | Adventure Capitalist | First Stage Capital

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design | INTELLITHOUGHT

Definitioner

HR
Human Relations
Equity
  • Ownership in the capital of a Company. In corporations, it is called “stock”; in limited partnerships or LLCs, it is called “interests” or  “units.”3
  • This designation is given to a stockholder’s ownership in a company. The amount of ownership is obtained when an individual or corporation purchases one or more shares of stock (equity shares).  The more equity purchased, the greater the ownership.4
Private Equity
  • A company ownership position that is not listed and cannot be traded on a public securities exchange.  Issuance, ownership and exchange of private securities are regulated differently from those of public securities under federal and state law.1
  • Equity securities of companies that have not “gone public” (are not listed on a public exchange). Private equities are generally illiquid and thought of as a long-term investment. As they are not listed on an exchange, any investor wishing to sell securities in private companies must find a buyer in the absence of a marketplace. In addition, there are many transfer restrictions on private securities. Investors in private securities generally receive their return through one of three ways: an initial public offering, a sale or merger, or a recapitalization.3
  • Private equities are equity securities of unlisted companies. Private equities are generally illiquid and thought of as a long-term investment. Private equity investments are not subject to the same high level of government regulation as stock offerings to the general public. Private equity is also far less liquid than publicly traded stock.5
Capital
Financial capital is a term that can refer to the money exchanged between entrepreneurs and investors during a business deal. Entrepreneurs need to raise capital for their startups while investors can provide them with the needed capital (or funding). Financial capital usually comes with interest, and new business owners can use their financial capital in purchasing real capital (or machinery or equipment) for their new business.4
Related Terms Carried Interest | Accrued Interest Related Articles Why Can't I Obtain Startup Funding? 9 Constituents Investors Will Want to Talk With Prior to Funding Your Startup