Most venture capitalists prefer to purchase ownership through common stock or convertible preferred stock.

Name: Most venture capitalists prefer to purchase ownership through common stock or convertible preferred stock.
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Venture capitalists typically prefer to purchase convertible preferred stock because it offers a combination of the upside potential of equity with the downside protection of debt, providing a more favorable risk-reward balance compared to common stock.

Most Venture Capitalists Prefer to Purchase Ownership Through Common Stock