In exchange for the financing they receive from venture capitalists,entrepreneurs must give up a portion of their businesses,sometimes surrendering a majority interest and control of its operations.

Question

Quizplus · Accepted Answer

This is true because venture capitalists typically invest in early-stage companies with high growth potential, and in return, they expect a significant return on their investment. To mitigate the risk of their investment, they often require a portion of the company's equity and sometimes control over its operations.

In Exchange for the Financing They Receive from Venture Capitalists,entrepreneurs