What do we call firms that invest in start-up companies with high growth potential in exchange for a share of ownership?

Question

Quizplus · Accepted Answer

Venture capitalists are firms that invest in start-up companies with high growth potential in exchange for a share of ownership. Commercial bankers, mutual funds, and institutional lenders are not necessarily focused on investing in start-up companies, nor do they typically receive ownership shares in the companies they invest in.

What Do We Call Firms That Invest in Start-Up Companies