Venture Capital vs. Publicly Held Firm Investments

Venture Capital differs from investments from publicly held firms.

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Venture capital differs from investments from publicly held firms in that they are

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A. B. C. D. E. F.

E

Venture capital differs from investments from publicly held firms in that they are generally:

1. For newer companies with little operating history.

2. For smaller companies in which the venture capital firm and the entrepreneurial company have a high degree of personal involvement.

3. Illiquid in the short-term, until the company goes public or is acquired by another company, which usually takes three to seven years.

4. Difficult to value because there is no public market for these securities.

5. Going to require future rounds of financing.