Which statement best describes venture capital?

A. Venture capital is typically a secondary form of financing, after bank financing.
B. Venture capital is short-term financing, usually at higher-than-market rates.
C. Venture capital is financing for privately held companies, typically in the form of equity and/or long-term debt.

Correct Answer: C

Venture capital becomes available when financing from banks and public debt or equity markets is either unavailable or inappropriate.