Company Finance and Startups (1) | Business English Vocabulary

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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

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