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

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.

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