By staging capital, the venture capitalists preserve the right to abandon a project whose prospects look dim.

Question

Quizplus · Accepted Answer

Staging capital allows venture capitalists to make smaller initial investments and subsequently provide additional funding based on the project's progress. However, if the project's prospects appear to be unfavorable, venture capitalists can choose to stop investing and abandon the project.

By Staging Capital, the Venture Capitalists Preserve the Right to Abandon