MANAGEMENT

Detailed explanation-1: -Venture Capital (VC) financing is a method of raising money via high net worth individuals who are looking at diverse investment opportunities. They provide the company with much needed capital to sustain business in exchange of shares or ownership in the company.

Detailed explanation-2: -The capital, which is raised in exchange for the share of ownership in the company, is called equity capital.

Detailed explanation-3: -Equity financing involves selling a portion of a company’s equity in return for capital. For example, the owner of Company ABC might need to raise capital to fund business expansion. The owner decides to give up 10% of ownership in the company and sell it to an investor in return for capital.

Detailed explanation-4: -Equity financing is when you raise money by selling shares in your business, either to your existing shareholders or to a new investor. This doesn’t mean you must surrender control of your business, as your investor can take a minority stake.