Barry and Inga recently founded a hot new company that is growing rapidly.They need more money to finance their company's growth and have been approached by a venture capital firm.Barry and Inga should realize that the venture capital firm will only provide financing under which of the following circumstances?

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Quizplus · Accepted Answer

Venture capital firms typically invest in exchange for a significant stake in a company's ownership. This allows them to have a say in the company's strategic decision-making and also benefit from the company's growth and eventual sale or public offering. Choices B, C, and D are not typical requirements for venture capital financing. Avoiding risk is not practical for a growing company, pledging specific company assets as collateral is more common in debt financing, and personal debt incurred by the founders is not a determinant for venture capital financing.

Barry and Inga Recently Founded a Hot New Company That