Explanation:

• Option A is incorrect because it describes distressed debt, not venture debt. Distressed debt involves acquiring the obligations of mature companies facing financial challenges.

• Option B is correct as it accurately defines venture debt. Venture debt is a form of private debt financing aimed at start-ups or early-stage companies, often with minimal or negative cash flow, and typically backed by venture capital.

• Option C is incorrect because venture debt does not involve mature companies; it is specifically tailored for early-stage ventures.

This question highlights the distinct features of private debt, emphasizing the characteristics of venture debt within the broader context of alternative investments.