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Venture Capital involves the financing of start-up companies. These companies generally don't have the ability to source capital from traditional sources like banks or public markets as they are in the early stages of their life cycle and often generate negative cash-flows. So, rich individuals who can afford to take huge risks usually invest or rather fund such new business ventures.

Financial is provided during the following 3 stages:

1. Seed Stage - For research, assessment and development of an initial concept

2. Start-up Stage - To finance product development and initial marketing of the product

3. Expansion Stage - For the increase of production capacity, development of markets or products or enhancement of working capital.

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Q: What are the Aims of venture capital financing?
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