What is the difference between Venture Capital and MoU?

Question

Venture Capital
Memorandum of Understanding
are in use
What they are?

Answer 1

VENTURE CAPITAL — Typically high-risk financing, generally in the form of preferred stock convertible into common stock or common stock, or debentures convertible into common stock, often provided to companies not qualifying for other types of financing. The venture capital investor typically requires a high potential of returns, and will structure the investment so that it can be liquidated through an initial public offering, or in some other manner within a three to seven year period.

MEMORANDUM OF UNDERSTANDING (MOU) — Similar to a Letter of Intent. LETTER OF INTENT — A preliminary ‘pre’ agreement usually between an underwriter and a company stating the terms and conditions that will be contained in the underwriting agreement. An LOI is less than a contract and more than a handshake, but is usually written in terms that allow both parties to opt out of an agreement.