What does venture capital mean?
[UPSC Civil Services Exam – 2014 Prelims]
(a) A short-term capital provided to industries
(b) A long-term start-up capital provided to new entrepreneurs
(c) Funds provided to industries at times of incurring losses
(d) Funds provided for replacement and renovation of industries
- It is a type of private equity provided by wealthy investors to small business companies that are believed to have long-term growth potential.
- Venture capital is a long-term risk capital to finance high technology projects, which involve risk, but at the same time has a high potential for growth.