The three principal ways in which venture capital firms exit venture-backed companies are

Question

Quizplus · Accepted Answer

Selling to a strategic buyer and selling to a financial buyer are the two most common ways venture capital firms exit their investments. These buyers can be other companies in the same industry or financial institutions such as private equity firms. The third way is by offering stock to the public through an initial public offering (IPO). Buying out the founder is not a common exit strategy as it goes against the VC's goal of achieving high returns on their investments. Therefore, option C is the most accurate answer.

The Three Principal Ways in Which Venture Capital Firms Exit