0

Does it mean "protection"? https://dictionary.cambridge.org/dictionary/english/buffer?q=buffer+

“Some of them raise money, come out to market proactively before they actually need (it), when they have say 12 months’ capital to go. They come out now just so they have more buffer because people are uncertain about the future capital market,” Liu told CNBC.

Source: https://www.cnbc.com/2019/07/15/china-technology-venture-capital-vc-investment-plunges-in-q2.html

1 Answer 1

0

Yes, it does imply "protection", but in a more figurative use than "physical" protection. In the financial sense, a "buffer" is a excess of money or funding that can be used to protect against market fluctuations.

For example, Apple famously keeps a large amount of "cash on hand" which it can use as a "buffer" to protect the company against possible short-term market losses. The buffer also protects the company from seeking investment from speculators who may demand the company focus on short-term profits, at the expense of long-term stability.

In this context, Liu is saying that these companies are seeking venture capital investment early, in order to keep a "buffer" of their current capital, in case they can't quickly find any suitable investors.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .