gs1easy
What does venture capital mean?
- A.A short-term capital provided to industries
- B.A long-term start-up capital provided to new entrepreneurs
- C.Funds provided to industries at times of incurring losses
- D.Funds provided for replacement and renovation of industries
▶ Answer & Explanation
Correct answer: B. A long-term start-up capital provided to new entrepreneurs
Venture capital is a form of private equity and a type of financial investment that entrepreneurs and small businesses with perceived long-term growth potential can obtain. It is typically provided by venture capital firms or funds to startups and small businesses that are believed to have the potential to grow significantly but are often too small, too young, or too uncertain to secure traditional bank loans or equity financing.
Source: UPSC gs1 2014