Venture capital is a form of private equity financing that is provided by venture capital firms or funds to start-ups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth. It is characterized by being a long-term investment, usually in equity, and is provided to fund initial operations or expansions of new ventures.
What does venture capital mean?
Asked in UPSC IAS 2014 · Topic: Industrial Sector (Industrial Investment Trends (Foreign Direct Investment - FDI, Domestic Investment) and Incentives)
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Answer: B. A long-term start-up capital provided to new entrepreneurs
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