BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a fund provided to industries at times of incurring losses.
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It is a long-term start-up capital provided to new entrepreneurs.
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It is a fund provided for renovation of industries.
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It is a short-term capital.
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Detailed explanation-1: -Which of the following clearly defines venture capital? It is a fund provided to industries at times of incurring losses. It is a long-term start-up capital provided to new entrepreneurs.
Detailed explanation-2: -The correct answer is A long-term start-up capital provided to new entrepreneurs.
Detailed explanation-3: -A venture capitalist (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake.
Detailed explanation-4: -Venture capital (VC) is a form of investment for early-stage, innovative businesses with strong growth potential. Venture capital provides finance and operational expertise for entrepreneurs and start-up companies, typically, although not exclusively, in technology-based sectors such as ICT, life sciences or fintech.
Detailed explanation-5: -Google Inc, for example, is a major venture capitalist. Its division, Google Ventures, focuses on venture capital. Google Ventures also has a large European arm, which the company set up with an initial investment of $100 million.