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What are Venture Capital Funds?

Important banking qna for banking aspirants, which is helpful in banking exam.

Feb 27, 2015 15:00 IST

Venture Capital Funds refer to those funds which are invested in a new company, keeping in view its future growth. The Reserve Bank Of India had issued guidelines on venture capital towards the end of 1988 and recognized its role in Indian conditions.

Types of Venture Capital Funds

  1. Venture capital funds by the central government
  2. Venture capital funds by the state government
  3. Venture capital funds by the public sectors

Venture Capital is generally available in three forms:

  • Equity
  • Conditional loan
  • Income note
  • Other financing method like debenture