Economics · Venture Capital and AIF Regulations
Consider the following statements regarding the venture capital ecosystem and regulations in India: Statement 1: Venture capital is a form of equity financing provided to early-stage, high-potential startups for long-term growth. Statement 2: The investment process begins with deal sourcing, followed by a detailed due diligence phase analyzing risks and business models. Statement 3: Venture capital funds in India are regulated under SEBI (AIF) Regulations 2012, where traditional VCFs generally register as Category I AIFs. Statement 4: Sweat equity shares are issued by a company to its directors or employees at a discount or for consideration other than cash. Which of the following describes the collective accuracy of these statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only Statement 3 is correct.
- 2Statements 1 and 3 are correct while 2 and 4 are incorrect.
- 3All four statements (1, 2, 3, and 4) are correct.✓
- 4Only Statements 1, 2, and 4 are correct.
Correct answer
All four statements (1, 2, 3, and 4) are correct.
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