undercapitalize

American  

[uhn-der-kap-i-tl-ahyz] / ˌʌn dərˈkæp ɪ tlˌaɪz /

especially British, undercapitalise

verb (used with object)

undercapitalized, undercapitalizing

1. to provide an insufficient amount of capital for (a business enterprise).

---

undercapitalize British  

/ ˌʌndəˈkæpɪtəˌlaɪz /

verb

1. to provide or issue capital for (a commercial enterprise) in an amount insufficient for efficient operation

---

Other Word Forms

• undercapitalization
  noun

Etymology

Origin of undercapitalize

under- + capitalize

Example Sentences

See Examples For:

undercapitalize undercapitalized

The combined capitalization of these companies is $957,843,750, but as it has until very recently been the policy of Standard Oil to undercapitalize, its actual resources are considerably in excess of this sum.

From Time Magazine Archive

The two mortgage giants are also undercapitalized, even as Messrs. Pulte and Trump talk about letting them break free of government conservatorship and float IPOs.

From The Wall Street Journal ● Oct. 8, 2025

Schiff said that while he didn’t realize the bank was undercapitalized until it was audited, he stressed it was not a matter of solvency but regulatory minimum capital requirements.

From Seattle Times ● Jul. 1, 2022

“China is so undercapitalized right now, it’s ridiculous,” he said.

From Washington Times ● Dec. 20, 2021

Clearly, fast-casuals are not for the hidebound — or the undercapitalized.

From Washington Post ● Aug. 28, 2017

And, of course, we saw at once that the thing was ridiculously undercapitalized.

From North of Fifty-Three by Fischer, Anton Otto