How does a venture capital firm usually end its involvement with a firm in which it has invested?

Question

Quizplus · Accepted Answer

A venture capital firm usually exits its investment by arranging an initial public offering (IPO) which allows the venture capital firm to sell its ownership in the firm to the public. This is often the most lucrative way for the venture capital firm to liquidate its investment. Option A and D are possible but not as common as IPOs, and option C is not a viable exit strategy for a for-profit venture capital firm as it does not result in any financial return.

How Does a Venture Capital Firm Usually End Its Involvement