Once a venture capitalist makes an investment in a firm, subsequent investments are made in rounds and are referred to as ________.
A) later funding
B) successive funding
C) subsequent backing
D) follow-on funding
E) ensuing backing

Question

Quizplus · Accepted Answer

Subsequent investments made by a venture capitalist in a firm after the initial investment are known as follow-on funding rounds. This allows the VC to provide additional funding to the company as it grows and develops, while also providing the VC with the opportunity to increase their ownership stake.

Once a Venture Capitalist Makes an Investment in a Firm