Venture Capital provides investment funding to...

• A. Grants given by nonprofit organizations.
• B. Publicly traded stocks.
• C. Startups with high growth potential.
• D. Loans from banks with low interest.

Answer: (C)

Venture capital is about providing equity funding to startups with high growth potential. Venture capitalists pool money from investors and invest in private companies that aren’t yet publicly traded, taking an ownership stake in return. They look for teams with scalable ideas, large markets, and the potential for rapid expansion, aiming for big returns through an exit such as an IPO or acquisition. This approach differs from grants (which don’t involve ownership or repayment), from buying publicly traded stocks, and from bank loans (which are debt that must be repaid with interest).