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Question

Venture capital is concerned with: (1) New project having potential for a higher profit. (2) A new project of high technology (3) New project has a high risk (4) All the above.


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Solution

Answer: (4) All the above

Entrepreneurs need investments for their start-up companies. The investments or the capital that these entrepreneurs receive from wealthy investors is called Venture Capital and the investors are called Venture Capitalists.

  • Sustainable investment and the capital investor wants to invest their money in a business that is considered venture capital and has a long-term growth outlook in order to begin a company with future growth.
  • These investments are risky and able to produce impressive gains. In the early stage of the exchange of shares, venture capital funds invest.
  • These start-ups are focused on creative technologies and typically come from high-tech sectors.

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  1. How is the cost of capital relevant?
  2. What Is a Capital Market and Its Features?

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