An early-stage investment in a growing business by a venture capital firm characteristically demands a higher rate of return, as much as _____ percent or more annual cash-on-cash return, whereas a later-stage investment demands a lower rate of return.

Question

Quizplus · Accepted Answer

Early-stage investments are riskier, so venture capital firms typically demand a higher rate of return, often around 50 percent or more, to compensate for the increased risk compared to later-stage investments.

An Early-Stage Investment in a Growing Business by a Venture