Western Governors University (WGU) C208 Change Management and Innovation Practice Exam

Question: 1 / 400

Venture capital is primarily focused on what type of companies?

Established companies with stable profits

New ventures with exceptional growth potential

Venture capital is primarily focused on new ventures with exceptional growth potential because these investments are typically high-risk yet offer the possibility of high returns. Venture capitalists are usually interested in startups that are innovative and have the capability to scale rapidly, often in emerging markets or cutting-edge industries like technology, biotechnology, or renewable energy.

These companies generally require significant upfront investment to develop their products or services and to establish their market presence. Venture capitalists not only provide funding but often also offer strategic guidance, industry connections, and management expertise to help these new ventures succeed and navigate the challenges of early-stage business development. This focus on growth potential differentiates them from traditional funding sources that might lean towards established companies with stable profits or those that support non-profit organizations and small businesses with limited market reach.

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Non-profit organizations seeking funding

Small businesses with limited market reach

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