What will a VC usually receive in exchange for the money invested?

Name: What will a VC usually receive in exchange for the money invested?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Venture capitalists (VCs) typically receive convertible preferred stock in exchange for the money they invest. This type of stock often provides advantages such as dividends, liquidation preferences, and the option to convert into common stock, usually giving VCs a favorable position compared to common stockholders.

What Will a VC Usually Receive in Exchange for the Money