Which of the following is NOT a characteristic of venture capital?

Venture capital is specifically designed to fuel high-growth potential companies, particularly startups, rather than focusing on stable or established firms. The correct answer reflects the fundamental nature of venture capital, which is aimed at innovative, typically early-stage companies that show promise for rapid growth and scalability.

Investing in stable, established firms contrasts with the appetite for risk typical of venture capital. Instead, these investors look for businesses that are in a position to exploit new markets or develop new products. In essence, the characteristic of investing in startups that are seen as capable of exceptional growth defines venture capital, distinguishing it from other forms of investment that prefer established firms with predictable returns.

On the other hand, venture capital does involve institutional capital, targets companies that can scale significantly, and provides additional expertise to help maximize the growth potential of the startups it invests in. Thus, focusing on stable businesses is not aligned with the objectives and practices of venture capital.