The three primary reasons startups need funding are ________.
A) cash flow challenges, capital investments, and lengthy product development cycles
B) business research, cash flow challenges, and costs associated with building a brand
C) bonuses for members of the new venture team, attorney fees, and lengthy product development cycles
D) attorney fees, capital investments, and marketing research
E) bonuses for members of the new venture team, marketing research, and personnel costs

Question

Quizplus · Accepted Answer

Cash flow challenges, capital investments, and lengthy product development cycles are the three primary reasons startups need funding. These reasons can include the need to cover operating expenses before revenue starts flowing, the need for equipment or infrastructure investments, and the extended time it can take to create and launch a new product. The other answer choices (B, C, and D) include some valid reasons but do not provide the full, primary reasons for startup funding needs. Answer choice E includes personnel costs, which can be a factor, but it is not one of the three primary reasons.

The Three Primary Reasons Startups Need Funding Are ________