Jones & Co.is funded by a group of individual investors for the sole purpose of providing funding for individuals who are trying to convert their new ideas into viable products.What is this type of funding called?

Question

Quizplus · Accepted Answer

The type of funding described in the scenario is called venture capital. This involves providing funding to start-ups or early-stage companies with high growth potential in exchange for equity in the company. Venture capitalists typically invest in companies that have promising new ideas and innovative technologies that have the potential to disrupt industries and create significant returns on investment. Jones & Co. fits this description, as they are focused on funding individuals who are trying to convert their new ideas into viable products. Green shoe funding, tombstone underwriting, red herring funding, and life cycle capital are not relevant to the scenario described.