Which is NOT a common source of venture capital?

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Venture capital typically refers to funding provided by investors to startups and small businesses with perceived long-term growth potential. Common sources of venture capital include wealthy individuals, who often invest their personal funds in high-risk, high-reward opportunities. Venture capital firms are dedicated entities that pool resources from various investors to finance new ventures, seeking significant profit from their investments.

Government grants, however, are fundamentally different from venture capital. They are funds provided by the government, usually with no expectation of repayment. Grants are often aimed at promoting specific initiatives in areas such as research, innovation, or community development, rather than seeking equity in a business like venture capital does. Therefore, government grants do not fit the traditional model of venture capital funding, making it the correct answer to the question regarding which is NOT a common source of venture capital.

In contrast, banks generally do not provide venture capital in the same way as the other sources listed. They typically focus on loans secured by assets rather than taking equity stakes in companies. This further highlights that government grants, unlike the other options, are not aimed at investing directly in the growth of startups.

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