BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Venture capital is concerned with a new project having the potential for higher profits, a new project of high technology as well as a new project having a high risk. So, the correct option is ‘all the above’. Venture capital is the initial investment necessary for a new business venture to grow, to put it simply.

Detailed explanation-2: -The way Venture Capital funds make money are two fold: via management fees and carries (carried interest). Management fees: management fees are usually defined as the ‘cost of having your assets professionally managed’.

Detailed explanation-3: -Carried interest is the most profitable part of the deal for a venture capitalist. In the example above, the investors earn 20 percent on every dollar over the initial investment amount.

Detailed explanation-4: -Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.

Detailed explanation-5: -Venture Capital Fund is made up of investments from wealthy individuals or companies who give their money to a VC firm to manage their investment portfolios for them and to invest in high-risk start-ups in exchange for equity. The basic idea is to invest in a company’s balance sheet and infrastructure.