Venture Capital for Companies: Key Considerations

Understanding Companies that Receive Venture Capital

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Question

Which is a most correct statement concerning companies that receive venture capital?

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A. B. C. D. E.

E

Companies that receive venture capital are far more likely to succeed than companies that do not receive such funding. Studies show that there is only a 10% to

20% failure rate for investments in a venture capitalist's portfolio, as compared to a 10%-20% success rate for all new companies.