Options generally have no effect on the value of a venture capital investment.

Question

Quizplus · Accepted Answer

Options can have an effect on the value of a venture capital investment as they can provide additional rights or benefits to the holder, which can impact the overall valuation of the company. For example, if an option gives the holder the right to purchase shares at a discounted price, this can affect the dilution of existing shareholders and potentially decrease the overall value of the investment.

Options Generally Have No Effect on the Value of a Venture