capitulationIn finance, capitulation is the process of selling equity and giving up or surrendering any promise of monetary gain in an effort to get out of a particular market and into a less risky investment. DataMerge, a financial information provider, says that venture capital investments in an enterprise are usually between $500,000 and $5 million, and that the investor is likely to expect an annual return of 20% to 50%. If a venture capitalist capitulates, he may sell equity at cost or perhaps even take a loss.
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| Last updated on:
Oct 10, 2008 |
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