Understanding Venture Capital in Private Equity

Easy Types Of Alt Investments Private Equity

Private equity is a significant category within alternative investments that involves investing in companies that are not publicly traded. These investments can take various forms, including buyouts, venture capital, and growth capital. Understanding the different types of private equity investments is crucial for an investor.

Which of the following options best describes a characteristic of venture capital within private equity?

Venture capital primarily targets established companies with stable cash flows.

Venture capital investments typically focus on startup companies and early-stage businesses.

Venture capital often involves acquiring a controlling interest in a company.

Hint

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