| Variable Rate | An interest rate that can move up or down at any time. Usually linked to changes in the Prime Rate or LIBOR, a Variable Rate financing can provide benefits for a start-up venture if structured properly. |
| Venture Capital | Capital or monies made available for start-up firms and/or other business ventures with growth potential.
Capital Sources Group prides itself in aligning the right project (after strong review) with the proper venture capital form or party. Venture Capital is the process by which investors fund early stage, more risk oriented business endeavors. A venture capital funding arrangement will typically entail relinquishing some level of ownership and control of the business. Offsetting the high risk the investor takes is the promise of high return on the investment. Start-up companies that receive venture capital are perceived to have excellent growth prospects but don't have access to capital markets because they are private companies. In return for venture capital, investors may receive a say in the company's management, as well as some combination of profits, preferred shares or royalties. Sources of venture capital include wealthy individual investors, investment banks, and other financial institutions that pool investments in venture-capital funds or limited partnerships |
