___________ is the reason why venture capital tends to flow to start-up firms that have executives with proven track records.
A) "Path dependency"
B) "Golden parachutes"
C) "Success breeds success"
D) "The Pygmalion effect"
E) none of these

Question

Quizplus · Accepted Answer

"Success breeds success" is a common concept in venture capital. Investors are more likely to put money into start-ups with executives who have a track record of success because they believe that those executives are more likely to lead the company to success again. This concept is a key reason why VC tends to flow to firms with experienced leadership.

___________ Is the Reason Why Venture Capital Tends to Flow