Definition:
The term Capital Investment has two usages in business. Firstly, Capital Investment refers to money used by a business to purchase fixed assets, such as land, machinery, or buildings.
Secondly, Capital Investment refers to money invested in a business with the understanding that the money will be used to purchase fixed assets, rather than used to cover the business' day-to-day operating expenses.
If you are seeking investors for your business, you will most likely find that interested investors prefer to make a Capital Investment, specifying what the money will be used for.
Also Known As: Venture capital.
Common Misspellings: Captial investment, capitol investment, capetal investment.
Examples:
Jenna agreed to make a capital investment in Bupinder's new business, specifying that the money was to be used to buy the machinery needed to start production.
