Initially, Small Business Investment Companies' access to borrowed funds appeared attractive. This was because venture investing and debt service commitments are an ideal mixture of financing for startups.

Question

Quizplus · Accepted Answer

Venture investing involves high risk and potential for high returns, which does not align well with the fixed repayment obligations of debt service commitments. Startups often lack the steady cash flows needed to service debt, making this mixture challenging.

Initially, Small Business Investment Companies' Access to Borrowed Funds Appeared