Risk Capital

Capital you're, um, risking.

So...isn't all capital investing risk capital? Well, yes. But it's a matter of degree. Is there really risk in the U.S. defaulting on a T-Bill? Yes, of course. But if Uncle Sam defaults, then it likely means we've been entirely nuked and there's really no reason to sweat it: you're dead. So risk capital generally refers more to risky investments where there is sizeable risk of the capital not being returned at all.

Think: Venture Capital investments, naked call options, speculative real estate development...stuff like that. Risky. Dangerous. Not for the faint of heart.