Having developed a prototype of his new lawnmower,John is attempting to acquire sufficient capital to market his product.In exchange for a majority ownership of his company,John receives two million dollars from an investment group in Brampton to provide the income to launch this endeavour.The investors group is an example of a(n) ___________.

Question

Quizplus · Accepted Answer

A venture capital company is specifically designed to invest in startups, providing the necessary capital to fund their growth and development. In exchange for their investment, they typically receive a percentage of ownership in the company. This aligns with John's situation, where he received funding for his lawnmower prototype in exchange for a majority ownership in his company from an investment group. The other options, mutual company, income trust, labor-supported investment fund, and private equity firm, do not typically invest in startups and are not a good fit for John's situation.

Having Developed a Prototype of His New Lawnmower,John Is Attempting