Question

Briefly discuss any two features of the following sources of finance available to an organisation in India.

Venture Capitalists

Answer 1

The features of the venture capitalists are as follows:

• They provide funding to startups and accelerate early growth.
• They invest in equity.
• They are high risk but high potential returns for the investor.
• There is an active supervision by investors.
• It is a long-term investment.
• It involves multiple rounds of funding.
• The focus is on high-growth sectors/preference for scalable businesses.