Venture capitalists expect lower than average returns on their investment since they are exposed to little risk.

Name: Venture capitalists expect lower than average returns on their investment since they are exposed to little risk.
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Venture capitalists actually expect higher returns on their investment because they are exposed to higher risk. They invest in startups and early-stage companies that have a greater probability of failure, so they require a higher return to compensate for that risk.

Venture Capitalists Expect Lower Than Average Returns on Their Investment