Characteristics of Venture Capital Financing

CMAT 2025 · Innovation & Entrepreneurship · Medium · Venture Capital

Venture Capital financing is ___________ (A) Type of financing by venture capital. (B) It is private equity capital provided as seed funding to early-stage. (C) Investment in blue-chip companies for an assured return. (D) It is a high-risk investment made with the intention of creating high returns. (E) Done in technology projects only.

Choose the correct answer from the options given below :

  1. A.

    (A), (B), (D) and (E) only are correct statements.

  2. B.

    (A), (B) and (D) only are correct statements.

  3. C.

    (A), (B) and (E) only are correct statements.

  4. D.

    (C), (D) and (E) only are correct statements.

Answer

B

Explanation

Statements (A), (B), and (D) describe VC correctly. Statement (C) is incorrect because VC is not for blue-chip companies with assured returns. Statement (E) is incorrect because VC is not restricted to technology projects only.

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