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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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Who provide venture capital financing in Sri Lanka?

Lanka Ventures PLC provide the capital financing in Sri Lanka..


What do you understand by venture capital?

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A. debt financing. C. equity financing. B.seed capital. D. venture capital. B seed capital PG 202


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Venture Capital market, equity financing (which could be through public stock offering or private placements ), informal risk capital (called angel financing) and debt financing.


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