1. to supply (a business or enterprise) with more capital than is needed or prudent for its operations
Usage: transitive verb; finance/business term
2. to assign an excessively high capital value to (a company or asset)
Usage: transitive verb; finance/business term

Examples

• The startup overcapitalized itself with venture funding it did not immediately need.
• Investors warned that the company had overcapitalized its assets, inflating their true market worth.
• Many new businesses fail because they overcapitalize early and burn through cash too quickly.
• The firm's decision to overcapitalize the division led to inefficient spending and poor returns.
• Analysts argued the market had overcapitalized tech stocks during the boom.
• By overcapitalizing the project, management tied up resources that could have been deployed elsewhere.