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 receive an equity position in the company in which they invest, which means they own a portion of the company. They often also secure positions on the board of directors, allowing them to have a say in company decisions. This arrangement provides them with both a financial stake and influence over the company's direction, unlike options A, C, and D, which do not accurately describe the typical exchange between venture capitalists and entrepreneurs.

Venture Capitalists Provide Financing for New Firms from the Seed