Venture Capital financing is ___________

(A) Type of financing by venture capital.
(B) It is private equity capital provided as seed funding to early-stage.
(C) Investment in blue-chip companies for an assured return.
(D) It is a high-risk investment made with the intention of creating high returns.
(E) Done in technology projects only.

Choose the correct answer from the options given below :

Venture capital financing is a type of private equity investing specific to earlier-stage businesses that require capital. In return, the investor receives an equity stake in the business through the issuance of some type of security instrument. The financing is naturally high risk as the involved businesses are still in the nascent stage.

Statements A and B both align with the summary above. Statement C talks about blue-chip companies and is irrelevant. Statement D also aligns with the discussion on high risk. Statement E narrows down the ambit of venture capital financing to technology projects, and is wrong. 

The correct answer is option B.