Meaning & use

raising capital

phrase·Academicbusinessfinance

Last updated

UK/ˌreɪzɪŋ ˈkæpɪtl/
US/ˌreɪzɪŋ ˈkæpɪtl/

Meaning

  1. phrasefixed phrasebusinessfinance

    Collecting money for a business, from investors, lenders or the public, to fund its start-up or growth.

    Grammar: Verb phrase; the verb 'raise' changes form: they raised capital, they are raising capital.

    Patterns

    • raising capital for something
    • raising capital from someone

    The start-up spent six months raising capital before it could hire any staff.

    Raising capital through a share sale let the airline buy new planes.

    Small firms often struggle with raising capital during a recession.

Word forms

base formraise capital
past tenseraised capital

Common combinations

difficulty raising capital
The founders had difficulty raising capital in the first year.
raising capital from investors
Raising capital from investors meant giving up part of the company.
raising capital through shares
Raising capital through shares can dilute existing owners.
raising capital to expand
The bakery is raising capital to expand into a second shop.

Synonyms and how they differ

fundraising
Fundraising is broader and includes charities and donations, while raising capital is mainly about funding a business.
financing
Financing covers any way of paying for something, including loans, whereas raising capital stresses gathering the money.
securing investment
Securing investment suggests a successful result from investors, while raising capital describes the whole effort.

Opposites

repaying debt

Word family

raise verb
to gather money
capital noun
money used to run or grow a business
capitalise verb
to provide money for a business
capitalisation noun
the total money invested in a company

Commonly confused: raising capital or raising?

raising capital vs raising

Raising needs an object (raising capital); do not confuse it with rising, which has none: prices are rising.

Practice

The company is currently ______ capital by selling new shares.

Make it your own

Write a sentence using “raising capital”, then check it and compare it with the examples above.

Your sentence stays on this page and is not sent anywhere.

Explore more words