Merchant Banking and Financial Services, III Semester (MBA), UNIT-1
Definition of Venture Capital
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Venture capital is a method of financing high risk projects promoted by entrepreneurs. The purpose of financing is to execute the ideas of entrepreneurs. The risk level is very high. It can be in the form of equity participation.
Features of Venture Capital
It is a form of equity financing.
The projects which involve high risk, hi-tech and growth-oriented.
Mostly it provides financing for small and medium scale business
and it may enter into partnership with them.
This type of financing is exclusively for commercialization of new
ideas.
After making investment, venture capitalists have permanent
monitory system and take part in the business activities.
Tags : Merchant Banking and Financial Services, III Semester (MBA), UNIT-1
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