MANAGEMENT

Detailed explanation-1: -Venture capital firms in the United States may also be structured as limited liability companies, in which case the firm’s managers are known as managing members. Investors in venture capital funds are known as limited partners.

Detailed explanation-2: -Venture capitalists are in the business of investing money in businesses-small businesses, mid-sized companies and global enterprises-any company that shows potential for significant growth over the short term.

Detailed explanation-3: -Therefore, venture capitalists invest in companies with high growth potential or in companies which have the ability to quickly generate cashflow. Venture capitalists typically exit the investment through the company listing on the stock exchange, selling to a trade buyer or through a management buyout.

Detailed explanation-4: -A prominent source of capital for innovative companies is venture capital. Venture capital is a form of specialized financial intermediation that finances companies with the goal of realizing a capital gain by bringing them public or having them acquired within a few years.