Which of the following is a feature of Venture Capital?
Answer & explanation
Correct answer: option 4
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.
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.