Which of the following is an advantage of venture capital? Venture capital is typically easy to...
- Venture capital is typically easy to secure even with the most basic of business plans.
- New companies can access large amounts of upfront capital that does not have to be repaid, as a loan would be.
- There are no upfront costs to a company seeking venture capital funding.
- Venture capital investments typically carry a small amount of risk and generate small to moderate returns.
Homework Answers
Ans) new companies can access large amounts of upfront capital that does not have to be repaid,as a loan would be
For a new business it is important that it remains fully funded to grow. In case of loan it would have to repay it periodically and thus it wont have cash as and when needed. Venture capital invest in companies that has good growth potential and takes equity shares in exchange, thus company retains cash for longer period to grow
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Which of the following is an advantage of venture capital?
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