DictionarycapitalizationBusiness funding
noun

capitalization

The financing provided to establish or sustain a business.

The investors discuss the new company's capitalization before committing funds.

Etymology

Capital names funds available for investment, and the added endings name the process or result of supplying them. Capitalization gives a business the financial resources needed for operation.

More examples

  • The report summarizes the firm's debt and equity capitalization.
  • Insufficient capitalization left the business unable to expand.
  • The merger changes the group's overall capitalization.

Similar words

financing
The broader process of obtaining funds for activities.
capital structure
Specifically the proportions of debt and equity financing.