Meaning & use

raise capital

phrase·Academicbusinessfinance

Last updated

UK/reɪz ˈkæpɪtl/
US/reɪz ˈkæpɪtl/

Meaning

  1. phrasefixed phrase

    To gather money for a business or project, for example by selling shares, borrowing or finding investors.

    Grammar: Verb phrase with an object built in: the firm raised capital; the tense goes on raise.

    Patterns

    • raise capital for something
    • raise capital from someone
    • raise capital by doing something

    The startup raised capital from several investors last spring.

    Many firms raise capital by selling shares to the public.

    They need to raise capital before building a second factory.

Word forms

third person singularraises capital
past tenseraised capital
past participleraised capital
-ing formraising capital

Common combinations

raise capital through a share offering
The company plans to raise capital through a share offering.
raise capital quickly
It is hard to raise capital quickly in a downturn.
raise capital for expansion
They raised capital for expansion into Asia.
struggle to raise capital
Small farms struggle to raise capital.
raise venture capital
The app maker raised venture capital in its first year.

Synonyms and how they differ

secure funding
Secure funding stresses getting the money agreed, whereas raise capital stresses the effort of gathering it.
finance
Finance as a verb means to provide the money, often by one lender, while raise capital is from the borrower's point of view.
fundraise
Fundraise is often used for charities and campaigns, while raise capital is for businesses.
obtain investment
This is more general; raise capital implies actively seeking money.

Opposites

Word family

capital noun
money used to start or run a business
capitalize verb
to provide with capital
capitalization noun
the total amount of a company's capital
capitalist noun
a person who invests money in business

Commonly confused: raise capital or raise money?

raise capital vs raise money

Raise money is the general phrase for any gathering of funds, while raise capital is specifically about investment funds for a business.

Practice

The young company is trying to ______ so it can hire more engineers.

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