Discussion
........................ is a specialised firm that finances young, startup companies.
Answer: C
A specialised firm that finances young startups is a venture capital firm.
Venture capital firms raise funds from investors and invest them, usually as equity, in new, high-risk, high-growth businesses that cannot yet raise money from banks or the stock market. In return for the risk they take a significant stake and often a role in management, and they exit later through a sale or a public issue.
Finance companies make loans and leases to borrowers in general. 'Small Business Finance Co.' and 'Capital Creation Co.' are not the recognised name for this kind of specialised investor.
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