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Financing obtained from investors who believe the borrower will experience rapid growth and who receive equity (part ownership) in return is called ________.

Sagot :

Financing obtained from investors who believe the borrower will experience rapid growth and who receive equity (part ownership) in return is called Venture capital.

What is venture capital example?

  • Venture Capital (VC) is the term used to describe investment given by investors to small or newly established companies that have a promising future.
  • A venture capital fund is a type of private equity that is funded by institutional and private investors, including investment banks, insurance providers, and pension funds.

What is a venture capital in business?

  • A type of funding for creative, early-stage enterprises with significant growth potential is venture capital (VC).
  • For entrepreneurs and start-up businesses, venture capital provides financing and operational experience, generally, but not always, in technology-based industries like ICT, health sciences, or fintech.

What is venture capital and its types?

  • The use of venture capital funds at various phases of a firm determines how they are categorized.
  • Early stage financing, expansion financing, and acquisition/buyout financing are the three basic forms.
  • Early stage financing is divided into three subgroups.

Learn more about venture capital here:

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