The majority of venture capital funds are managed by
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A. B. C. D.C
In 1994, independent firms managed approximately 70 percent of the venture capital market.
The majority of venture capital funds are managed by independent and private concerns.
Venture capital (VC) funds are investment funds that provide capital to early-stage and high-growth potential companies in exchange for equity or ownership stakes. These funds play a crucial role in supporting entrepreneurial ventures and fueling innovation.
Option A, investment companies, typically refers to mutual funds or other types of investment vehicles that pool funds from individual investors and invest in a diversified portfolio of securities. While some investment companies may have venture capital funds as part of their offerings, they do not represent the majority of VC funds.
Option B, corporations, generally refers to established companies operating in various industries. While corporations can engage in venture capital activities, the majority of VC funds are not managed by corporations.
Option D, small business investment companies (SBICs), are private investment firms licensed by the Small Business Administration (SBA) in the United States. SBICs provide financing to small businesses, including equity investments and long-term loans. While SBICs are involved in financing small businesses, they do not represent the majority of VC funds.
Therefore, option C, independent and private concerns, is the most accurate answer. Independent and private concerns refer to specialized firms or entities that are dedicated to managing venture capital funds. These concerns typically have expertise in evaluating high-risk, high-potential investment opportunities and provide funding, mentorship, and strategic guidance to help these ventures grow and succeed. They may include venture capital firms, angel investors, family offices, or other private investment entities.
It is worth noting that the landscape of venture capital is dynamic, and the distribution of VC fund management may vary across regions and over time. However, as of the knowledge cutoff in September 2021, independent and private concerns have traditionally managed the majority of venture capital funds globally.