Question

What is the primary concern of founders who trade equity for capital for their growing venture?
(A) Capitalization
(B) Control
(C) Valuation
(D) Investor capabilities

Answer 1

Answer:

A ) Capitalization is the right answer

Answer 2

(A)."Capitalization" is the primary concern of founders are trade equity growing venture.

Explanation:

• A venture capitalist (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake. This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets.  
• A venture capitalist (VC) is an investor who provides capital to firms that exhibit high growth potential in exchange for an equity stake.
• VCs target firms that are at the stage where they are looking to commercialize their idea.
• Well-known venture capitalists include Jim Breyer, an early Facebook (FB), now Meta, investor, and Peter Fenton, an investor in Twitter (TWTR).
• VCs experience high rates of failure due to the uncertainty that is involved with new and unproven companies.