If an entrepreneur receives $275,000 from venture capitalists in exchange for stock,what do the investors receive in return?

Question

Quizplus · Accepted Answer

Venture capitalists invest in startups in exchange for equity in the business, meaning they receive a share of ownership in the company. In this case, the investors would receive stock in the entrepreneur's business worth $275,000. They would then hope to see a return on their investment as the company grows and eventually goes public or is acquired. Options A, C, and D are not typically part of a venture capitalist's investment agreement.

If an Entrepreneur Receives $275,000 from Venture Capitalists in Exchange