BANKING AFFAIRS

Detailed explanation-1: -UPSC Mains. Q. Which of the following give finance to young, start-up companies? Notes: Venture Capital Firm is a semi-government, or private firm that provides startup or growth equity capital and loan capital to promising ventures for returns that are higher than market interest rates.

Detailed explanation-2: -Venture capital (VC) is a form of private equity funding that is generally provided to start-ups and companies at the nascent stage. VC is often offered to firms that show significant growth potential and revenue creation, thus generating potential high returns.

Detailed explanation-3: -Start-up financing (beginning of activity phase). In this stage the investor finances the production activity even if the commercial success or flop of the product/service is not yet known. The level of financial contributions and risk is high. Early stage financing (first development phase).

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.