Tatiana recently founded a new company that is growing rapidly. She is in need of a large amount of capital to finance her company's growth. So, she commences talks with the venture capital firm, Tyrone Finance Inc. Tatiana should realize that the venture capital firms such as Tyrone will only provide financing:

Question

Quizplus · Accepted Answer

Venture capital firms are looking for a significant return on their investment, so they typically require a significant stake in the ownership of the company in exchange for financing. This allows them to share in the company's profits if it is successful. Avoiding risky investments, showing profitability for four quarters, and offering company assets as collateral may all be factors in the negotiations, but a significant ownership stake is typically the main requirement.

Tatiana Recently Founded a New Company That Is Growing Rapidly