A company has a value of $400,000 and is looking for $500,000 in order to move into other markets and build the production capability to do so.What is the most likely source of funding?

Question

Quizplus · Accepted Answer

Venture capitalists are typically interested in investing larger amounts of money (over $1 million) into high-growth companies that have the potential for large returns. They often work with startups that have already established some traction in the market and are looking to scale up their operations, like the company mentioned in this scenario. Family and friends (A) may not have access to the necessary funds, an IPO (B) typically requires a company to be larger and more established, and an angel investor (C) may not be interested in investing such a large amount.

A Company Has a Value of $400,000 and Is Looking