Question

Define Venture Capital.

Hint:

Venture capital fuels innovation by providing funds to startups in exchange for equity ownership.

Answer 1

Step 1: Definition.
Venture capital refers to the financing provided to startups or small businesses that have long-term growth potential.
Step 2: Explanation.
It is a type of private equity investment made by venture capital firms or investors in exchange for ownership or equity in the business.
Venture capital supports innovation and helps entrepreneurs scale their businesses when traditional funding sources are unavailable.
Step 3: Importance.
Venture capital plays a critical role in promoting new ideas, technological innovation, and employment generation.
Step 4: Conclusion.
Therefore, venture capital is an investment made in high-risk, high-potential startups or small enterprises to support their early growth stages.