Venture Capital

Ancao, Love Irelyn T.

BSBA- 4 (1st Schedule)

1. What do you mean by Venture Capital?

Answer: Venture Capital is a financing platform that bridges the gap between entrepreneurs
who have business ideas with high growth potential and wealthy investors who are in a position
to provide funds for building the infrastructure that is needed for the growth of the said
business.

2. What is Venture Capital and how does it work?

Answer: Venture Capital use the capital they raise to invest in businesses with high growth
potential or businesses that have already demonstrated impressive growth.

3. V.C. Capitalists who are they do they do?

Answer: A venture capitalist is an investor who supports a young company in the process of
expanding or provides the capital needed for a startup venture. Venture capitalists invest in
companies because the potential return on investment (ROI) can be significant if the company is
successful.

4. What is an example of Venture Capital?

Answer: Google, Facebook, Airbnb, Uber, Snapchat, Flipkart and so on would not have been
able to survive without venture capital.
All businesses quoted above are internet companies, and they usually have negative cash flows
in the beginning because they need to survive in the long term, there is a need for external
capital to fund the company because they are losing money. Venture capital invests in these
very high-risk businesses, hoping that they would be a success.

5. What is Venture Capital in business?

Answer: Venture capital financing can be a beneficial form of financing for small and medium
enterprises, as it can provide access to capital and resources that may not be available
otherwise. Venture capital investments can also provide a company with access to new markets
and customers, as well as increased visibility.