Venture capital is traded for an equity interest rather than a debt interest in the new firm.

Name: Venture capital is traded for an equity interest rather than a debt interest in the new firm.
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Question

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Venture capitalists invest in startups by providing them with funding in exchange for an equity interest, which means they become partial owners of the company. This is different from debt financing, where the new firm borrows money which they will have to pay back with interest.

Venture Capital Is Traded for an Equity Interest Rather Than