This exit strategy allows the entrepreneur an opportunity to buy back venture capital stock at cost and an additional premium.

Question

Quizplus · Accepted Answer

This strategy is known as a buyback, where the entrepreneur can repurchase the stock owned by the venture capital firm at the original cost of investment plus a premium. This provides the entrepreneur with an opportunity to reclaim control of their company and achieve a successful exit from the venture capital partnership.

This Exit Strategy Allows the Entrepreneur an Opportunity to Buy