Question

In: Economics

There are many ways to fund a company, but the most frequently used source is Venture...

There are many ways to fund a company, but the most frequently used source is Venture Capital.
True or False?

Solutions

Expert Solution

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.


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