Asked by Liliana Tiznado on Jul 16, 2024
Verified
The venture capitalist's exit strategy is an important factor when choosing a venture capitalist.
Exit Strategy
An exit strategy is a planned approach to withdraw from a business, investment, or situation to secure profit or minimize loss.
- Grasp the significance of the venture capitalist's exit strategy, financial strength, and success history on the decision-making process.
Verified Answer
NJ
Nathaniel JabatiJul 22, 2024
Final Answer :
True
Explanation :
An exit strategy outlines how a venture capitalist plans to sell their stake in a company to realize their investment's return, which is crucial for understanding the potential financial outcome and alignment of interests between the venture capitalist and the entrepreneurs.
Learning Objectives
- Grasp the significance of the venture capitalist's exit strategy, financial strength, and success history on the decision-making process.