Venture capital funds typically use stage financing in order to

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Quizplus · Accepted Answer

Stage financing is a common practice among venture capital funds to achieve multiple objectives. The funds use this approach to ensure that the entrepreneur or the founding team stays disciplined and focused on achieving predetermined goals. This helps to minimize the risk associated with investing in a startup. Additionally, stage financing allows the venture capital funds to retain an option for funding the future developmental stages of the firm if the entrepreneur successfully achieves the goals set for the initial stage. Therefore, all of the above options are correct.

Venture Capital Funds Typically Use Stage Financing in Order to