Venture capital firms in an early-stage investment characteristically demand a higher rate of return, as much as ____ percent or more annual cash-on-cash return, whereas a later-stage investment demands a lower rate of return, perhaps ____ percent annually.

Question

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Venture capital firms typically demand a higher rate of return for early-stage investments due to the higher risk involved, often seeking around 50 percent or more annual cash-on-cash return. For later-stage investments, where the risk is lower, they might seek around 30 percent annually.

Venture Capital Firms in an Early-Stage Investment Characteristically Demand a Higher