In which of the following steps would a venture capitalist apply business expertise, share industry contacts, and perhaps even become involved with the day-to-day operations of the underlying firm?
A)valuation
B)deal structure
C)value creation
D)deal flow
E)exit

Question

Quizplus · Accepted Answer

Value creation is the step where venture capitalists apply their business expertise and become involved in the day-to-day operations of the firm to help create value. They can also leverage their industry contacts to help the firm grow and succeed. Valuation, deal structure, deal flow, and exit are other steps in the venture capital process where the focus is on evaluating investment opportunities, negotiating terms, sourcing new deals, and exiting investments for a return.

In Which of the Following Steps Would a Venture Capitalist