question archive Which of the following statements characterizes an investment fund called VC / Venture Capital? Select one option In a portfolio of companies in which a VC fund invests, many of the companies will often go bankrupt
Which of the following statements characterizes an investment fund called VC / Venture Capital? Select one option In a portfolio of companies in which a VC fund invests, many of the companies will often go bankrupt
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Which of the following statements characterizes an investment fund called VC / Venture Capital?
Select one option
In a portfolio of companies in which a VC fund invests, many of the companies will often go bankrupt.
VC funds are very keen to make an exit quickly on their companies, they therefore invest in companies and develop them to list the companies on the stock exchange. This is how VC funds get their investments back and ensure a high return on the funds.
They are funds that always seek to exert influence on the companies by becoming chairman of the board as the core of VC funds is that they exercise active ownership.
VC funds will never invest unless they secure a majority of shares and can control who becomes the general manager.
VC funds are very keen to make an exit quickly on their companies, they therefore invest in companies and develop them to list the companies on the stock exchange. This is how VC funds get back their investments and ensure high internal rates of return in the funds. This high internal rate of return is then used to raise new capital for new funds, and the work of raising capital for new investments is a core activity for VC funds.
