The shares of publicly quoted companies are valued daily, according to the whims of demand and supply on the stock market. Valuation of private companies is more difficult because there is no market in their shares - unless the whole company is being sold. In other cases, valuation of private company shares is often done by reference to p/e ratios in similar quoted companies, or by discounting the projected future cashflow of the business. See discounted cash flow. However, valuation tends to be an art not a science and becomes a matter of negotiation between a willing buyer and a willing seller.

Investments made in businesses where the potential return is created by recognizing value which other interested parties do not.

A recent appearance on the financial markets. VCTs are specialist investment trusts, which offer tax advantages to investors willing to provide money for investment in unquoted companies.

The seller of a business.

Risk capital in the form of equity and/or loan capital that is provided by an investment institution to back a business venture which is expected to grow in value.

A crude term sometimes applied to suppliers of venture capital who are perceived to be greedy or ruthless.