Cost of Capital
The cost of capital is the return a company must earn to justify using money, blending what it pays lenders with what shareholders expect.
Why It Matters
It is the hurdle every project must clear. When it rises, long-dated investments are the first to be cut.
Related Terms
- Interest RateAn interest rate is the price of borrowing money, expressed as a percentage of the amount borrowed over a period.
- Risk PremiumA risk premium is the extra return investors require for holding a riskier asset instead of a safe one.
- Debt CapitalDebt capital is money raised by borrowing, repaid with interest on agreed terms, without giving up ownership.
- ValuationValuation is the price placed on a company, derived from what buyers will pay, from its earnings or cash flow, or from comparison with similar businesses.
VANTAGE52 Coverage
Published reporting filed under the topics behind this concept.
The $159 Billion Paradox Behind the Global Startup Funding Boom
Global venture funding reached $159 billion in the third quarter of 2026. But behind the headline number lies a changing investment landscape, where artificial intelligence commands the majority of capital and a small group of companies captures an extraordinary share of funding.
egaranti Raises $1.1 Million in Pre-Series A Funding to Expand Across Central Asia
egaranti, the Türkiye-based warranty technology company, has raised $1.1 million in pre-Series A funding to accelerate its expansion in Uzbekistan, enter Kazakhstan and Azerbaijan, and develop a new consumer-facing warranty application in Türkiye.
Monzo’s £10 Billion Valuation Test Is Reshaping the Future of Digital Banking
After takeover talks with Nubank collapsed, Britain’s Monzo is turning to private equity investors. The shift highlights the growing tension between the ambitions of digital banks and the valuations investors are willing to pay.
AMD’s $8.2 Billion World Labs Bet Is About More Than AI Chips
AMD’s acquisition of San Francisco AI startup World Labs is taking the chip race into a new territory, combining compute, spatial intelligence and physical AI as the industry moves beyond models that only understand language.
EspressoLab’s 70% Sale to Abu Dhabi’s MAIR Group Reshapes the Turkish Coffee Brand
EspressoLab, one of Turkey’s fastest-growing coffee chains, is entering a new ownership era. Abu Dhabi-based MAIR Group has signed an agreement to acquire 70% of the company behind the brand, bringing a Turkish-origin coffee business with more than 400 stores across 21 countries into a new international growth phase.
Trump, Xi and Silicon Valley Are Redrawing the Global AI Map
The White House meeting between Donald Trump and Xi Jinping has placed artificial intelligence at the center of the U.S.-China relationship, while the presence of Silicon Valley’s most powerful technology executives has underscored how deeply AI has become tied to global economics, national security and geopolitical power.
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