Question

Pete has started an electronics firm with the potential for high growth. he obtains funding for the business from a group of investors who demand partial ownership of the business and representation on the board of directors. what type of financing has pete? procured?

Answer 1

The type of financing that Pete has secured is VENTURE CAPITAL. Venture capital is a type of private equity, a form of financing that provides funds by private investors to new companies with high potentials or emerging companies that are deemed to have high potentials. In return for the money provided by the private investors, they become part owners in the company.