In return for providing funds,venture capitalists receive:

Question

Quizplus · Accepted Answer

Venture capitalists receive an equity position in the firm, which means they own a certain percentage of the company and will share in any profits or losses. This allows them to potentially earn a higher return on their investment if the company is successful. Long-term or short-term bonds do not typically provide the same potential for return, and ownership of the entire firm would be a rarity in most venture capital deals.

In Return for Providing Funds,venture Capitalists Receive