When a venture fund exits a portfolio company, what is the primary goal?(2 Points)To secure a controlling interest in the companyTo maximize short-term profitsTo achieve a favorable valuation for the companyTo realize a return on the fund's investment
Question
When a venture fund exits a portfolio company, what is the primary goal?(2 Points)To secure a controlling interest in the companyTo maximize short-term profitsTo achieve a favorable valuation for the companyTo realize a return on the fund's investment
Solution
The primary goal when a venture fund exits a portfolio company is to realize a return on the fund's investment. This means that the venture fund aims to sell its stake in the company for more than it originally invested, thus making a profit. This is the main reason why venture funds invest in companies in the first place - to eventually sell their stake for a profit.
Similar Questions
What is the main goal of corporate venture capital investments?Multiple choice question.to create real options in terms of gaining access to new technologiesto make financial gains by selling more products in fewer marketsto increase market shareto reduce product costs
The General Partner in a Venture Capital Fund is the largest investor in the fund.Group of answer choicesTrueFalse
Venture Capital are companies/firms that loan you money based on your business plan.Group of answer choicesTrueFalse
What is main focus of a Venture capital to invest in a startup To help startup fight competition To make a startup profitable To scale the startup To help angel investor to exist
In the Venture Capital Limited Partnership model, the main investors are angel investors.Group of answer choicesTrueFalse
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.