Venture Capital Fundamentals

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What is venture capital?

Private equity financing provided to startups and early-stage companies with high growth potential

What do venture capital firms or funds receive in exchange for their investment?

Equity or an ownership stake

When do typical venture capital investments occur?

After an initial 'seed funding' round

Why do venture capitalists take on the risk of financing risky start-ups?

<p>In the hopes that some of the companies they support will become successful</p> Signup and view all the answers

What is the primary interest of venture capitalists in providing financing to start-ups?

<p>Generating a return through an eventual 'exit' event</p> Signup and view all the answers

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