Portfolio company
Encyclopedia
A portfolio company is a company or entity in which a venture capital
firm, buyout firm, holding company
, or other investment fund invests. All of the companies currently backed by a private equity
firm can be spoken of as the firm’s portfolio.
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
firm, buyout firm, holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
, or other investment fund invests. All of the companies currently backed by a private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm can be spoken of as the firm’s portfolio.