In the context of business finance, what term is used for investment capital provided to startup companies and small businesses with perceived high-growth potential, typically in exchange for an equity stake?
💡 Explanation:
Venture Capital (VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential. These investments are generally long-term and high-risk, seeking significant returns in exchange for partial ownership.