Explain the features of Venture capital.

1.	Explain the features of Venture capital.
Answer» Venture capital finance has the following features: 1. It is basically equity finance in relatively new companies. 2. It is long-term investment in growth- oriented small or medium firms. 3. Venture capitalists not only provide capital but also business skills to investee firms. 4. It involves high risk-return spectrum. 5. It is a subset of private equity. 6. The venture capital institutions have a continuous involvement in the business after making the investment. 7. Such institutions disinvest the holdings either to the promoters or in the market.

Answer»

Venture capital finance has the following features:

1. It is basically equity finance in relatively new companies.

2. It is long-term investment in growth- oriented small or medium firms.

3. Venture capitalists not only provide capital but also business skills to investee firms.

4. It involves high risk-return spectrum.

5. It is a subset of private equity.

6. The venture capital institutions have a continuous involvement in the business after making the investment.

7. Such institutions disinvest the holdings either to the promoters or in the market.

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