Q. Which of the following enterprises is/are funded mostly under Venture Capital funds?
1. Start-ups.
2. Small enterprises.
3. Medium enterprises.
Select the correct answer using the code given below:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: D

Venture capital funds are investment funds that manage the money of investors who seek private equity stakes in startup and small- to medium-sized enterprises with strong growth potential.  

  • These investments are generally characterized as high-risk/high-return opportunities. 
  • In the past, venture capital investments were only accessible to professional venture capitalists, although now accredited investors have a greater ability to take part in venture capital investments. 

Source: TMH Ramesh Singh