The performance requirement specifies that

Question

Quizplus · Accepted Answer

The performance requirement in typical venture capital deals specifies that the entrepreneur may be relieved of control by the venture capitalist if certain performance standards are not met. This provides an incentive for the entrepreneur to work hard to achieve the desired results and grow the company. It also gives the venture capitalist some control over the direction of the company and the ability to make changes if needed to ensure success. However, this does not necessarily mean that the entrepreneur will always be relieved of control, as each situation is unique and depends on the terms of the contract.

The Performance Requirement Specifies That