Venture Capital: Primary Use and Importance

The Primary Use of Venture Capital

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The primary use of venture capital is

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A. B. C. D. E.

E

Venture capital is financing for privately held companies, typically in the form of equity and/or longterm debt. Venture capital becomes available when financing from banks and public debt or equity markets is either unavailable or inappropriate.

Much like mutual fund managers, venture capitalists raise capital from investors in order to manage a portfolio of privately held investments.

The primary use of venture capital is for emerging growth business.