Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:

This is the early stage financing where capital is required by an entrepreneur for conducting research at pre-commercialization stage.

Options:

Second round financing

Seed capital finance

Pre-start-up and start up

Early financing

Correct Answer:

Seed capital finance

Explanation:

Seed capital finance It refers to the capital required by an entrepreneur for conducting research at precommercialization stage. During this stage, the entrepreneur has to convince the investor (VC) why his idea/product is worthwhile. The investor will investigate into the technical and the economical feasibility of the idea.