Question

Individual or limited partner venture capitalists generally:

A. seek an exit strategy.

B. provide only seed money to start-up firms.

C. tend to be long-term investors.

D. are easy to contact.

E. request less than 25 percent ownership.

Answer 1

Venture capitalists are usually long term investors , as they invest in start up companies which have just started and hence they take years to grow and expand. This makes the venture capitalists long term investors.

So, the correct option us option C.

Venture capitalists can either be individual or limited partners in a firm. They generally demand a ownership stake of less than 50% .So, option E is incorrect.  Venture capital investments are generally perceived as high-risk and high-reward. Investors in venture capital funds are typically very large institutions such as pension funds, financial firms, insurance companies. So, venture capitalists are not easy to contact. So, option D is incorrect. Once they invests in the company they take a share in the ownership and don't usually seek an exit strategy. If the business model is not successful, then they might seek out a exit strategy to cash out their investments. So, option A is incorrect.

Seed money is the money obtained only in the initial stages of the business, venture capitalists provide money through all stages of the company.So, option B is incorrect.