Money Banking

What does venture capital mean?

  1. Funds provided to industries at times of incurring losses
  2. A short-term capital provided to industries
  3. A long-term start-up capital provided to new entrepreneurs
  4. Funds provided for replacement and renovation of industries

Answer

Venture capital (VC) is financial capital provided to early-stage, high-potential, growth startup companies. The venture capital fund earns money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology and IT.

The correct option is C.