CUET Preparation Today
| Which of the following is NOT a feature of Venture Capital? |
It is basically debt finance in relatively new companies. It is medium term investment in growth-oriented small or medium firms. It involves medium risk-return spectrum. All of the above |
| All of the above |
| Thus, venture capital finance has the following features: 1) It is basically equity finance in relatively new companies. 2) It is long-term investment in growth-oriented small or medium firms. 3) Venture capitalist not only provide capital but also business skills to investee firms. 4) It involves high risk-return spectrum. 5) It is a subset of private equity. 6) The venture capital institutions have a continuous involvement in the business after making the investment. 7) Such institutions disinvest the holdings either to the promoters or in the market. |
