Which of the following statements is generally true of venture capital (VC) firms?
A) VCs are always silent partners in the startup company that they finance
B) VCs always have a majority of directors in the startup company
C) VCs generally provide management advice and contacts in addition to capital
D) All of the above statements are true of VCs

Question

Quizplus · Accepted Answer

While A and B are not necessarily true of all VC firms, C is generally true. VC firms often provide more than just capital to startups; they also offer management advice and networking contacts.

Which of the Following Statements Is Generally True of Venture