Venture capitalists provide ﬁnancing for new ﬁrms from the seed and start-up stage all the way to mezzanine and bridge ﬁnancing.In exchange for ﬁnancing entrepreneurs give:

Question

Quizplus · Accepted Answer

Venture capitalists typically provide financing in exchange for an equity position in the company, which means they become part owners of the company. They may also gain board of director positions, allowing them to have a say in major company decisions. This allows the venture capitalists to potentially profit from the success of the company in the long run. The other options (A, C, D, and E) are not commonly used methods of exchange for venture capital financing.

Venture Capitalists Provide ﬁNancing for New ﬁRms from the Seed