A central idea with obtaining risk capital is that a smaller percentage of a larger pie is preferred to a larger percentage of a smaller pie.

Question

Quizplus · Accepted Answer

This is true because when obtaining risk capital (such as from venture capitalists or angel investors), the goal is typically to grow the business and generate more value overall. Giving up a smaller percentage of the business in exchange for the capital allows for greater potential growth and success in the long run.

A Central Idea with Obtaining Risk Capital Is That a Smaller