interdependency

Definition

The state of being mutually reliant or interconnected, where different components of a system, such as funding instruments, influence and affect one another.

Etymology

Derived from the Latin 'inter-' (between) and 'dependere' (to hang down or rely). The suffix '-ency' was added to form the noun, describing a state of being mutually dependent.

In the news

In this article, the term refers to the complex, reciprocal relationships between different types of startup financing like venture debt and equity. Researchers used this concept to explain how the availability of one funding source impacts the behavior and availability of others within an ecosystem.

Venture debt acts as a bridge between funding stages for tech startups

Heriot-Watt University

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