Once the venture capital firm has received exit proceeds from a venture in the form of cash or securities, some method of returning the proceeds (less the carried interest)must be determined.

Question

Quizplus · Accepted Answer

This is true. After receiving exit proceeds, the venture capital firm must return the proceeds (less the carried interest) to the investors. The method for returning the proceeds can vary and may include distributing cash, securities, or a combination of both.

Once the Venture Capital Firm Has Received Exit Proceeds from a Venture