What does venture capital mean?
✓ Correct answer: b) A long-term start-up capital provided to new entrepreneurs
ExplanationVenture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.The majority of venture capital is often provided by wealthy individuals, investment banks, and other financial organisations.They often provide mentorship and strategic guidance in addition to funds.Investors take on higher risks with the expectation of high returns if the business succeeds.In India, firms such as Sequoia Capital, Accel Partners, and Indian Angel Network are well-known VC providers.Sectors like technology, e-commerce, and fintech have seen significant VC investments.UPSC GS Paper-I PYQs 272 131
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