Which of the following types of financing would be associated with the highest target compound rate of return on venture equity capital?

Question

Quizplus · Accepted Answer

Seed financing involves investing in very early stage start-ups with high potential for growth. Due to the high risk involved, investors in seed financing typically demand a high return on their investment, leading to a higher target compound rate of return compared to later stage financing options.

Which of the Following Types of Financing Would Be Associated