Which of the following is not true about venture capitalists?
A)They provide financial support for entrepreneurial ideas.
B)They share in the risks and rewards of entrepreneurial ideas.
C)They are a critical link between entrepreneurial ideas and market reality.
D)They issue shares of the IPO.

Question

Quizplus · Accepted Answer

Venture capitalists do not issue shares of the IPO. It is the investment banking firms that manage and underwrite the IPOs. Venture capitalists provide funding to startups before they go public and exit their investments either through acquisition by another company or by selling their shares to the public during the IPO.

Which of the Following Is Not True About Venture Capitalists