Capital


Ron explains in 60-seconds with no BS

So what is capital, really?

Capital is the money or assets a business uses to run, grow, or invest. It’s not just the cash in your bank account. It includes equipment, property, or even access to funding.

Capital is like fuel: the more you have, the more you can do, but it also matters how you get it.

Some capital is raised from investors. Some is borrowed. Some is self-funded (shoutout to credit cards and side hustles).

It shows up on your balance sheet and plays a huge role in how fast or far your business can go. No capital means no leverage, no growth, and usually no runway.

Startups love talking about ‘raising capital’ until they realize it means giving up control and buying fancy dinners to get the investors on board.


How people actually use it in a sentence...

“Valentina said she didn’t need capital to grow… Right up until her laptop died and she had to borrow money from her niece.”


Did you know...

The term “capital” comes from the Latin caput, meaning “head” as in head of cattle.

Livestock was one of the earliest forms of business capital.


Want the textbook definition? Check out Target Market on Investopedia.com