Venture capital is different from loan. How? - Vidyadip

Question

Venture capital is different from loan. How?

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Answer

S.No.	Basis	Venture capital	Loan
1.	Meaning	Venture capital is a type of private equity capital as seed funding to high potential, high-risk companies.	With a loan, a lender gives a business money and the business has a contractual obligation to pay back that amount plus interest over some period of time.
2.	Form of returns	Dividends	Interest
3.	Security	No security is offered.	Security is generally offered.

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