Which of the following are true statements?
I.Venture capitalists generally have an exit strategy.
II.Venture capitalists tend to specialize in one type of financing for a select type of firm.
III.Venture capitalists tend to be long-term investors in a firm.
IV.Venture capital is relatively easy to obtain for most new firms.

Question

Quizplus · Accepted Answer

Statement I is true as venture capitalists generally have an exit strategy in order to realize their returns on investment. Statement II is also true as venture capitalists often specialize in one particular type of financing, such as seed funding or growth capital, and focus on firms that fit their investment criteria. Statement III is false as venture capitalists typically have a finite investment horizon and look to exit their investments within several years. Statement IV is false as venture capital is a highly competitive and selective form of financing, with only a small percentage of new firms receiving funding.

Which of the Following Are True Statements