What does venture capital mean?
- AA short-term capital provided to industries
- BA long-term start-up capital provided to new entrepreneursCorrect
- CFunds provided to industries at times of incurring losses
- DFunds provided for replacement and renovation of industries
Explanation
Venture capital (VC) is a form of private equity financing that is provided by venture capital firms or funds to start-ups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth. Venture capitalists typically invest in companies that are new or have limited operating history but are expected to generate significant returns, usually in exchange for an equity stake. This capital is characterized by its long-term nature, aiming to support the initial growth, development, and expansion phases of new, often innovative, businesses, thereby fostering entrepreneurship.
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