Question

Which one of the following statement(s) about venture capital is true?

		Venture capital helps private firms to go public
		Venture capital helps firms to issue bond
		Their mainly fund startup firms in order to capture the explosive return from the very few companies that can succeed.
		Large corporations are not allowed to be involve in venture capital business

Answer 1

Venture capital helps private firms to go public-- False, most venture capitalist prefer to stay private, because they don't have to share as much open insight regarding their speculation valuations, their inside charge structures, and so forth. Venture capital battles to produce a better than average level of return. A great deal of VC choices are made on not a ton of information so it is extremely difficult to then swing to the market to give direction.

Venture capital helps firms to issue bond-- False, Venture capitalists mainly assists firms at four stages in its development:

• Idea generation,
• Start-up,
• Ramp up, and
• Exit.

Large corporations are not allowed to be involve in venture capital business-- False, Venture fundings are typically done by vast organizations who wish to contribute little however creative startup firms. They do as such through joint endeavor agreements and obtaining of value stakes. The contributing organization may likewise give the startup the executives and marketing advancements, strategic course, or potentially a credit extension.

Their mainly fund startup firms in order to capture the explosive return from the very few companies that can succeed-- True, because in funding, returns pursue the Pareto standard — 80% of the successes originate from 20% of the arrangements. Incredible capitalists contribute knowing they're going to take a ton of misfortunes so as to hit those successes.