Tactics that venture capitalists use to reduce the risk of their investment include

Question

Quizplus · Accepted Answer

Venture capitalists often fund ventures in stages to reduce their risk of investment, as this allows them to assess the progress of the venture before committing more funds. They may also require the entrepreneur to make personal investments and syndicate investments with other investors. Additionally, venture capitalists expect entrepreneurs to maintain in-depth knowledge about the industry in which they specialize, as this helps to reduce the risk of the venture failing due to lack of understanding of the market. Therefore, option C is the best choice as it incorporates all these risk reduction tactics.

Tactics That Venture Capitalists Use to Reduce the Risk of Their