Which of the following statements about venture capital is not true?
A) Entrepreneurs raise venture capital by selling shares of ownership in their business.
B) Venture capital is a form of public equity financing.
C) Venture capital is used to finance rapid growth or large capital expenditures.
D) Venture capital groups can often provide helpful management advice.

Question

Quizplus · Accepted Answer

Start-ups that involve large capital investments or extensive development costs may seek venture capital, a form of private equity financing through which entrepreneurs raise money by selling shares in the new venture. Venture capitalists nearly always have high performance expectations from the companies they invest in, but they also provide important managerial advice and links to key contacts in an industry.

Which of the Following Statements About Venture Capital Is Not