In: Economics
There are many ways to fund a company, but the most
frequently used source is Venture Capital.
True or False?
Answer: FALSE
Reason: The most common and frequently used source of funding a company is through personal savings or personal contacts (private placement) and then the order is as follows:
Debt Financing
Friends & Family
Angel Investors
Venture Capitalists (VCs)
Hence, venture capital funding is not the most frequently used although it is one of the very important sources.