Debt capital market and equity market jointly makes the capital market. These markets are used by the governments and several companies for raising funds for long and short term. The trade in these markets are done through several financial instruments.
The debt capital market trades in such financial instruments which pays interest. There are the bonds and several loans which acts as the prime financial instrument of this market. Because of these interest factor, the debt capital market is also known as fixed income market.
Bonds are of several types like the government bonds, the municipal bonds, corporate bonds and many more. By investing in these bonds, the investors actually provide loan to the respective organization or to the government. These loans are provided for some fixed interest rate which the company or the organization provides to the investor at regular intervals. Because of the interest payment, this type of debt capital market is called the fixed income market.
The modern concept of venture capital should be grateful to General Doriot because he was the person who founded the American Research and Development Fund. This was done to provide financial assistance to the activities of developing new technologies in the US universities. At the same time, the commercial use and financial benefits from such technologies were also considered seriously.
With the commercial success of the concept of venture capital, big players entered the venture capital market of United States of America. The giant companies like Xerox and General Electric played a major role in expanding the venture capital market. The entry of these companies in this market encouraged with separate divisions to deal in the market, encouraged many others. Because of these situations, the venture capital market was expanded beyond the territories of US and within a short period, it gained ground globally.