One principle of venture capital funding is:

Question

Quizplus · Accepted Answer

The principle of venture capital funding is that the earlier the development stage of the company, the higher the expected return on the investment must be. This is because investing in early-stage companies comes with a higher risk, and therefore, venture capitalists require higher potential returns to offset the risk. As the company develops and becomes less risky, the expected return on investment decreases accordingly. Therefore, choice D is the correct answer.

One Principle of Venture Capital Funding Is