Venture Capital
Investment in early-stage businesses with growth potential.
Real World
In 2004, Google received $25 million in venture capital from Sequoia Capital and Kleiner Perkins, which funded server infrastructure and growth before its 2004 IPO valued the company at $23 billion.
Exam Focus
Note that venture capital involves equity sacrifice and loss of control — always include this downside when evaluating it as a source of finance.
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