Capital

Capital is resources, like money, that companies use to invest or spend. It also includes assets used to generate income or value, such as equipment or real estate. Capital is needed to start a business and to buy assets, such as computers or machinery, to pay for operations, like staff payroll, and to invest in opportunities to grow the business. Companies raise capital in rounds, pitching for money from venture capitalists, angel investors, institutional investors, individuals and investment firms. After a series of capital raising rounds, a company may raise more capital by going public on the share markets through an IPO. An individual’s capital may include personal savings, loans, cryptocurrency, investments from individuals or institutions, dividends, or business profit.